Market Comparison

Market Comparison is a method used in real estate valuation and financial analysis where the value of an asset, such as property or a business, is determined by comparing it to similar assets that have been sold or are currently on the market. This approach relies on analyzing recent sales data from comparable properties or businesses, taking into account various factors such as location, size, condition, and market conditions.

The goal of market comparison is to establish a fair market value based on observed market activity, offering a practical and empirical basis for valuation. It is commonly used by appraisers, investors, and real estate professionals to assess property values and make informed decisions regarding buying, selling, or investing.

In summary, market comparison serves as a critical tool in the assessment and determination of value, grounded in actual market behaviors and trends.