Which statement about the accuracy of the direct comparison approach is true?

• A. It is always perfectly accurate
• B. It depends upon the quality of data
• C. The accuracy of the method depends upon the appraiser
• D. It disregards market conditions

Answer: (C)

The accuracy of the direct comparison approach rests on the appraiser’s ability to identify truly comparable sales and to adjust for differences in a way that reflects current market realities. A skilled appraiser uses solid data, but the final value depends on judgment—how well they select comparables, what adjustments they make for differences in size, condition, features, and location, and how they interpret market conditions. Even with good data, poor or inappropriate adjustments, or a lack of local market knowledge, can lead to less accurate results. Market conditions are not ignored; they’re reflected through the prices of comparable sales and the adjustments applied. So, the key factor driving accuracy is the appraiser’s expertise and judgment.