Casa Academy

Reviewed by Casa Academy and updated July 29, 2026 using the current DBPR checklist and Pearson VUE scheduling guidance.

Market Data Approach

The market data approach, also called the sales comparison approach, estimates property value by analyzing recent sales of similar properties and adjusting for differences in size, condition, location, and features, reflecting what buyers actually paid in the open market.

Exam context

Market data approach equals sales comparison approach on exams. Income approach uses NOI; cost approach uses replacement cost minus depreciation. Match comps to residential valuation questions.

Selecting comparables

Appraisers choose closed sales near the subject in time and distance with similar property type. Adjustments add or subtract value for extra bedrooms, garage spaces, lot size, or inferior location. Gross living area is a primary variable on residential appraisals. Active listings and pending sales may support trends but closed sales carry the most weight.

When it dominates

Owner-occupied homes and vacant land rely primarily on market data. Income-producing property uses the income approach; specialized new construction may also use cost. Agents pricing listings use the same comp logic informally through MLS sold data and price-per-square-foot benchmarks.

Examples

  • Bedroom adjustment

    A subject has three bedrooms while the best comp has four. The appraiser subtracts $15,000 from the comp's adjusted sale price to reflect the difference before reconciling value.

  • Time adjustment

    A comp sold six months ago in a rising market. The appraiser adds a market conditions adjustment to reflect current buyer demand versus the older contract price.

Keep studying

Practice market data approach questionsEnroll in pre-licensing

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