In the second installment of a recent article by GlobeSt., J.H. Berry & Gilbert’s Paulk Turner, MAI, director of Appraisal and Valuation Services, discusses the sales comparison approach to commercial real estate appraisals. “Similar to the cost approach, the sales comparison approach is based on the premise that an informed and rational buyer would pay no more for a specific property than the cost of obtaining a property with the same quality, utility and perceived benefits of ownership, and is largely based on the principle of substitution,” Paulk said. When is this approach the best for appraisals? According to Paulk, “This is the most applicable approach for owner-occupied properties with limited income-producing potential, and is also the main approach used in residential appraisals.” Read article.