Month: February 2025

Introduction to Your Comparable Sales Toolkit Step 1: Subject Property Analysis Before searching for comparables, complete the Subject Property section thoroughly. This creates your baseline for comparison. Pay special attention to: Quality/condition ratings using the 1-5 scale provided Exact square footage from assessor records Lot size and utility Actual age and effective age if renovated Location characteristics Step 2: Comparable Search Parameters Use these initial filters in MLS: Within 15-20% of subject's square footage Similar style/design Similar age range (typically ±10 years) Sales within past 6 months Similar location characteristics Similar lot utility Step 3: Initial Screening From your initial search results: Pull 5-7 potential comparables Complete basic data in grid for each Eliminate any with: Non-market sales conditions Significantly different quality/condition Different highest and best use Incomparable locations Step 4: Detailed Analysis For remaining comparables: Complete verification checklist Document superior/inferior features Note significant differences requiring adjustment Rate overall comparability (1-5 scale) Step 5: Final Selection Choose your best 3-4 comparables based on: Fewest adjustments needed Most similar characteristics Most recent sales Most reliable verification Common Pitfalls and Solutions Problem: Focusing Too Much on Price per Square Foot Solution: Use the worksheet's comprehensive comparison grid to evaluate all features, not just size. Problem: Over-Reliance on Proximity Solution: Complete the location analysis section to ensure true neighborhood compatibility. Problem: Missing Transaction Issues Solution: Use the verification checklist for each comparable to identify non-market conditions. Problem: Insufficient Documentation Solution: Complete superior/inferior analysis for each comp to support your selections. Special Situations Limited Sales Data If you must use sales over 6 months old: Document market conditions Note any significant market changes Consider paired sales analysis for time adjustments Mixed-Use Areas Additional considerations: Verify zoning compatibility Check highest and best use Consider only similar use properties Unique Properties When the subject has unusual features: Expand search parameters Document market reaction to features Consider paired sales analysis for unique elements Professional Tips Documentation Best Practices Photos of all comparables MLS sheets retained Public record verification Notes on market conditions Maps showing relative locations Working with Appraisers Provide complete worksheet Include verification details Document any unique market conditions Note any special financing terms Highlight any significant market changes Understanding Market Dynamics Market Conditions Analysis Track and document: Days on market trends List price to sale price ratios Inventory levels Price trends Financing changes Neighborhood Analysis Consider: School district changes Development patterns Zoning changes Infrastructure improvements Economic influences Using the Superior/Inferior Analysis Purpose Document specific differences Support value conclusions Identify adjustment patterns Demonstrate market knowledge Implementation For each comparable: List superior features List inferior features Note market reaction Document support for conclusions This guide accompanies your Comparable Sales Analysis Worksheet. Together, they form a comprehensive system for selecting and analyzing comparable sales. Want access to our "Comparable Sale Toolkit" worksheet? This is a great companion document which will really support your research and help you to establish effective list prices. To get access to the toolkit, click here. Using the Worksheet Effectively Final Reconciliation Use the worksheet's reconciliation section to: Identify most reliable comparables Support value conclusions Document decision process Explain any unusual circumstances Support final value opinion Remember: The worksheet is designed to guide your analysis and document your conclusions. Complete all sections for best results. This guide accompanies the Comparable Sales Analysis Worksheet provided by: Agents Advantage Real Estate Academy www.agentsadvantageacademy.com Email: tammy@ctappraiser.com

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Month: February 2025

Comparable Sales Analysis: A Complete Guide

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