Complete Appraisal Blog

Comparable sales
April 4th, 2023 8:44 PM
A real estate appraisal is a professional opinion of a property's market value, and one of the key components to this process is finding comparable sales in the area. Comparable sales, or ‘comps’, are used to compare the features of the appraised property to recent sales of comparable properties nearby in order to determine its value.

The primary task for any appraiser is to find comps that closely mirror the characteristics of the property that is being appraised. This typically includes any similarities in size, condition, design and location.

When finding comps, it is important to find sales that have been completed relatively recently and in the same market area. If the comps are too old or are from a different market, they may not accurately reflect today’s market values and could lead to an incorrect appraisal.

When selecting comps, it is also important to consider certain features of the property that may have an effect on its market value such as views, condition, design elements, etc. It is vital to note any differences between the comps and the appraised property so that these can be taken into consideration when coming up with an estimate.

Finally, it is important to select at least three comps in order to ensure that you have a full and representative understanding of the market.

Choosing comparable sales is an essential part of the appraisal process and is something that any real estate appraiser must take seriously in order to produce ? credible results.

Posted in:General
Posted by Christopher Caccamo on April 4th, 2023 8:44 PMPost a Comment

Subscribe to this blog