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<br />DIRECT SALES COMPARISON APPROACH <br /> <br />The Direct Sales Comparison Approach involves the direct comparison of the property <br />being appraised to comparable properties that have sold in the same or similar markets <br />in recent years. This approach is also referred to commonly as the Market Data <br />Approach. <br /> <br />. <br /> <br />Among the basic real estate principles reflected in the Direct Sales Comparison <br />Approach is the principle of substitution, which states in part, that the value of the <br />property replaceable in the market tends to be set by the cost of acquiring an equally <br />desirable substitute property, assuming that no costly delay is encountered in making <br />the substitution. <br /> <br />Market research provides information on recent sales of properties as similar as <br />possible to the subject. The sale prices of those properties deemed most comparable <br />tend to set the range in which the value of the subject property will fall. Differences <br />between the subject and the comparables are thoroughly analyzed. The reliability of <br />this technique is dependent upon: <br /> <br />. the availability of comparable sales data, <br />. the verification of the sales data, <br />· the degree of comparability and extent of adjustments necessary for <br />differences between the properties, <br />· the absence of non-typical conditions affecting the sale prices. <br /> <br />. <br /> <br />On the following pages is a presentation of several land sales which are analyzed to <br />ascertain an indication of the subject property value. <br /> <br />- <br /> <br />BRKW APPRAISALS, INC. <br /> <br />PAGE 30 <br />