Sales Comparison Approach - SCA


DEFINITION of 'Sales Comparison Approach - SCA'

A real estate appraisal method that compares a piece of property to other properties with similar characteristics that have been sold recently. The sales comparison approach takes into account the affect that individual features have on the overall property value, meaning that the total value of the property is a sum of the values of all of its features. Real estate agents and appraisers may use this approach when evaluating properties to sell.

BREAKING DOWN 'Sales Comparison Approach - SCA'

The sales comparison approach often entails looking at local properties to see what they have in common. This allows appraisers to determine values for property features, such as fireplaces or two car garages, and requires less sophisticated statistical methods than checking on sales of properties in a wider geographic area.

  1. Appraisal Approach

    A procedure for determining an asset's value. The appraisal approach ...
  2. Qualified Appraisal

    An appraisal document that is created, signed and dated by a ...
  3. Appraised Value

    An evaluation of a property's value based on a given point in ...
  4. Appraisal

    A valuation of property (ie. real estate, a business, an antique) ...
  5. USDA Non-Streamlined Refinancing

    A mortgage-refinancing option offered by the United States Department ...
  6. FHA Streamline Refinance

    A mortgage-refinancing option offered by the Federal Housing ...
Related Articles
  1. Home & Auto

    Top 6 Mortgage Mistakes

    These common errors could end in foreclosure.
  2. Mutual Funds & ETFs

    Add Some Real Estate To Your Portfolio

    From REITs to owning your own home, find out how diversify your portfolio with real estate assets.
  3. Home & Auto

    Condo Complications: The Issues Behind Ownership

    Being a "condo person" is just one of the issues you'll have to examine when deciding if a condo is right for you.
  4. Home & Auto

    10 Tips For Getting A Fair Price On A Home

    Don't let buying a home bust your budget. Make sure the house you choose is worth the price you pay.
  5. Home & Auto

    Flipping Houses: Is It Better Than Buy and Hold?

    Real estate investors can flip a property or use it for cash flow. Find out which will work in your neck of the woods.
  6. Home & Auto

    7 Absolute No-Nos When Selling a Home

    Avoid these mistakes if you’re looking to make a quick and easy home sale.
  7. Home & Auto

    5 Reasons Zillow's Estimates Could Be Wrong

    Zillow uses a variety of data to calculate its "Zestimates," but anything from the wrong property details to missing upgrades can make them inaccurate.
  8. Home & Auto

    5 Ways Overvaluing Your Home Can Hurt You

    Getting top dollar for your home is everyone's goal, but overvaluing your home can hurt its chances of being sold.
  9. Home & Auto

    11 Hidden Costs Of Owning A Home

    You should be aware of the many additional costs of buying and owning a home, because they can be shocking.
  10. Home & Auto

    6 Neighborhood Red Flags

    There are some qualities you can’t discover about a neighborhood until after you’ve moved in. But there are ways to scout out red flags ahead of time.
  1. Who are the best-rated home insurance companies in the US?

    Based on consumer surveys, the best company for homeowners insurance in 2014 is Amica Mutual. Present and past insurance ... Read Full Answer >>
  2. How can I tell when a real estate agent might be lying to me?

    Real estate agents are likely to lie or fudge the details about their own credentials, the value and condition of a property ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Barefoot Pilgrim

    A slang term for an unsophisticated investor who loses all of his or her wealth by trading equities in the stock market. ...
  2. Quick Ratio

    The quick ratio is an indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to meet ...
  3. Black Tuesday

    October 29, 1929, when the DJIA fell 12% - one of the largest one-day drops in stock market history. More than 16 million ...
  4. Black Monday

    October 19, 1987, when the Dow Jones Industrial Average (DJIA) lost almost 22% in a single day. That event marked the beginning ...
  5. Monetary Policy

    Monetary policy is the actions of a central bank, currency board or other regulatory committee that determine the size and ...
  6. Indemnity

    Indemnity is compensation for damages or loss. Indemnity in the legal sense may also refer to an exemption from liability ...
Trading Center