This section focuses on current market forces in the determining the subject property's estimated value. The appraiser will garner at least three comparison property values, or "comparables." Some lenders and programs—such as for jumbo loans and properties that have experienced rapid appreciation—require four or more comparables. These appraisal comparables are recently listed or sold properties of similar type, size, quality and locale as the subject.
The market comparison approach is a standard part of all appraisal reports. This comparable estimate is the more reliable of the three approaches because it is based on verifiable market events.
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