In the context of appraisal, what does "comparable sales" refer to?

"Comparable sales" refers to properties that have recently sold and share similar characteristics with the property being appraised, such as location, size, age, and type of property. When appraisers determine the value of a property, they seek out these comparable sales because they provide a benchmark for what similar properties have sold for in the current market. This information helps establish a fair market value for the subject property based on actual transaction data, rather than theoretical values.

Analyzing comparable sales is a critical part of the appraisal process, as it allows the appraiser to consider market conditions and trends that have affected similar properties. The closer the comparable sales are in attributes to the property being appraised, the more accurate the resulting appraisal is likely to be. The focus on recent sales ensures that the data reflects current market conditions.

The other options do not align with the definition of comparable sales, as properties currently on the market may not have established values through sale, foreclosed properties could have distress pricing not reflective of typical values, and recently renovated properties lack the necessary context of actual sales data to be considered reliable comparables unless those renovations are consistent with the trends in the area.