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NE Dept of Revenue IAAO Forum 991

Ferguson House
Lincoln, NE

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This forum is designed to enhance the understanding and use of comparable properties. Appraisers use comparable property information every day. The entire appraisal process is dependent on the comparison of data. The analysis of real estate transactions is a critical component in the valuation of real property. Appraisal methodology and techniques are based on the comparison of data. Market analysis, highest and best use analysis, and the three approaches to valuethe sales comparison approach, the cost approach, and the income approachare developed based on the comparison of data. The proper recognition and identification of what is a comparable, why it has been selected as a comparable, and how the comparable is used is critical to the appraisal process. Improving an appraisers ability to effectively analyze and select relevant comparable properties will result in better supported, more believable and persuasive appraisals and appraisal reviews. Additionally, an enhanced understanding of the process of selecting and analyzing properties that possess characteristics that may be useful for comparative purposes enables an appraiser to more clearly explain and support the analysis in an appraisal report.