When valuing the subject property, which comparable should be used?

In the context of property valuation, selecting the most appropriate comparable is crucial to obtaining an accurate estimate of the subject property’s value. Choosing the comparable with the least number of adjustments generally indicates that the property shares more similarities with the subject property. Fewer adjustments suggest that the comparable's characteristics—such as location, size, age, condition, and amenities—closely align with those of the subject property being appraised.

A comparable requiring many adjustments often means that there are significant differences between it and the subject property, which can lead to less reliable valuation results. The more adjustments that need to be made to account for these differences, the greater the uncertainty and potential for error in the valuation process. Therefore, the best practice is to select a comparable that minimizes these adjustments, thereby providing a clearer and more direct comparison.

It’s also important to note that relying solely on the most recent sale or the one with the highest price might not yield the most relevant value. While timeliness is a factor in property valuation, the most recent sale may still require significant adjustments that complicate its comparability. Similarly, the highest-priced comparable doesn’t inherently mean it is the most accurate reflection of market value for the subject property. Different market conditions can also influence sale prices