When selecting a competing property for the ERC Appraisal Report, what is the primary consideration?

The primary consideration when selecting a competing property for the ERC Appraisal Report is that the property should be competing for the same potential buyer as the subject. This factor is paramount because the fundamental goal of the appraisal is to assess the value of the subject property in relation to similar properties that a buyer would consider. When appraisers analyze the market, they seek properties that attract similar buyers to ensure that the comparison is relevant and meaningful.

In real estate, buyer competition within the same market segment significantly impacts property value assessments. If a competing property is appealing to the same type of buyer as the subject, the appraiser can draw more accurate conclusions about market conditions, price ranges, and overall desirability. The other options, while relevant, do not encapsulate the core criterion for selecting comparable properties as effectively. For instance, while location is important, and size restrictions can be practical considerations, they do not prioritize the fundamental buyer overlap necessary for valid comparisons in an appraisal context. Therefore, focusing on competing properties from the perspective of buyer interest provides a clearer picture when determining market value.