Sales Comparison Approach — part of Real Estate Appraisal. Study the key terms below, then mark this lesson complete to advance your progress.
Comparable Sales (Comps): Recently sold similar properties used to estimate subject property's value.
Cap Rate: Net Operating Income ÷ Purchase Price — measures return on investment property.
Cost Approach: Value = land value + depreciated cost of improvements — used for unique properties.
Income Approach: Value determined by income the property generates — primary method for rental properties.
NTS (Notice of Trustee's Sale): Second notice — property will be auctioned at least 21 days after this is recorded.
BPO (Broker Price Opinion): Lender-ordered property valuation from licensed agent — cheaper than full appraisal.