What is a key requirement for a property to be considered a 'comparable sale'?

For a property to be considered a 'comparable sale,' it is essential that it shares similar design and features with the subject property. This criterion ensures that the properties being compared provide a reliable basis for valuation. Comparable sales should reflect the same market conditions and types of buyers and sellers, which is typically influenced by the physical characteristics of the properties.

When two properties have similar design elements, such as the number of bedrooms, bathrooms, square footage, and overall layout, it allows for a more accurate analysis of their market value. Variations in these features can lead to significant differences in how much buyers are willing to pay, thereby affecting the total sale price.

Other factors like location, price, and age of the property are also important in determining comparable sales; however, they are not as critical as the similarity in design and features. For instance, two properties located in different neighborhoods may have different values, even if they are similar in size or price. Therefore, focusing on similar design and features allows appraisers to derive more relevant and meaningful comparisons in the valuation process.