In the sales comparison approach, how is the subject property's value inferred with the given comparable property information?

In the sales comparison approach, the value of the subject property is determined based on the prices of similar properties that have recently sold in the same market area. This method involves analyzing comparable sales to derive a value estimate for the subject property by making adjustments for differences in features, location, and conditions of sale between the subject and the comparable properties.

The correct answer suggests that the inferred value of the subject property is $195,500, which implies that upon adjusting the sale prices of the comparable properties for factors such as square footage, amenities, and overall condition, this was the value determined to be most aligned with the characteristics of the subject property. The analysis would include looking at the specifics of each comparable, considering both positive and negative adjustments, and finally arriving at a value that realistically reflects what the market would support for the subject property based on these comparisons. This approach is widely used because it is grounded in actual market data, making it a reliable method for property valuation.

The values provided by the other options may not sufficiently reflect the pertinent adjustments made or might correspond to properties that differ too significantly in terms of key characteristics when compared to the subject property.