In the context of the sales comparison approach, what must be similar for property comparisons to be valid?

In the sales comparison approach, it is crucial that the properties being compared share similarities in their design and type. This is because these characteristics significantly influence a property's value. Design encompasses elements such as layout, architectural style, and functionality, while type refers to the category of the property, like single-family homes, condominiums, or multi-family units.

When conducting a sales comparison analysis, appraisers look for comparables that reflect the same market segment. Properties with comparable designs and types generally appeal to the same buyer demographics, which helps ensure that the value derived from the sales of those properties can be reliably applied to the subject property.

While factors like construction methods, landscaping features, and decorative elements can enhance or detract from a property's appeal, they do not fundamentally change its value on a comparable basis like design and type do. Therefore, having similar design and type is essential for accurate valuation in the context of this approach.