Which step is NOT part of the sales comparison approach?

The sales comparison approach is a method used to determine the value of a property by comparing it to similar properties that have recently sold in the same area. This approach centers around analyzing comparable sales to derive the value estimation.

Estimating operating expenses is not a component of the sales comparison approach. Instead, it is relevant in other contexts, such as when determining the value of income-producing properties through approaches like the income approach. In the sales comparison approach, the focus is not on the costs associated with the property’s operation but rather on the market conditions and the price at which comparable properties have sold.

The other steps involved in the sales comparison approach include adjusting comparable properties to account for differences, researching competitive market data to identify similar properties and sales figures, and verifying the accuracy of transactions to ensure that the data used is reliable and reflective of current market conditions. These processes are essential to ensuring that the value conclusions drawn from the comparison are credible and accurate.