What is a unit of comparison applicable to single-family residential property?

A unit of comparison for single-family residential property is crucial for making effective comparisons and appraisals. The price per square foot of living area provides a standard by which different properties can be evaluated relative to their size. This metric allows appraisers to compare properties on a more uniform basis, as it normalizes the price to the square footage of the living space, facilitating easier comparisons between homes of varying sizes and layouts.

Using the price per square foot helps in identifying trends within a given market and is particularly useful when evaluating homes that may not have directly comparable features. This method helps to understand how much buyers are willing to pay for each square foot of living area in the context of the current market conditions, making it a valuable tool for appraisers.

Other options, while they may also provide useful information, do not serve as universally applicable units of comparison for single-family residential properties. Total property price can be misleading due to the differing sizes and values of homes. Monthly rental rate pertains more to investment properties rather than owner-occupied single-family residences. Market sale price, while relevant, does not provide a normalized measure for comparison purposes as it encompasses many variables not strictly related to size.