What does "CBS" indicate when valuing properties?

In the context of property valuation, "CBS" refers to the concept that when using comparable sales to determine the value of a property, one may assess the differences between the subject property and the comparable properties being analyzed. The phrase "Comparable is Better, Subtract" captures the principle of adjustments in the sales comparison approach.

When appraisers evaluate comparables, they recognize that not all properties are identical; thus, they must make adjustments to the selling prices of the comparables based on various factors such as size, location, condition, and amenities. If a comparable property offers certain advantages over the subject property — for example, a larger size or better features — the appraiser might conclude that the value of the subject property is lower and will subtract the appropriate amount from the price of the comparable property to arrive at a more accurate estimate.

This adjustment process is crucial for ensuring that the final value reflects the true market conditions and characteristics of the property being appraised. Understanding CBS as "Comparable is Better, Subtract" illustrates how appraisers think critically about value differences while leveraging comparative data.