REAL 1820 Lecture Notes - Lecture 11: Sales Comparison Approach, Weighted Arithmetic Mean, Age Adjustment
28 Nov 2015
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2 note: comparable properties are called comps". 3 steps for this approach: 4 i) select the comparable properties. 5 ii) adjust the comps towards the subject property. 6 iii) develop a conclusion of value: select the comps. Comps should be in the similar submarkets (or neighborhoods) of the subject property. Submarkets may be separated by a variety of man- made, natural, or political boundaries: select the comps (cont"d) E. g. parents sell home to children. 4 (2) must be physically similar to the subject. Sold 2 years ago or more is too distant in time, thus not good comps. 6 ideally, need 3- 10 comps (the minimum number of comps is 3). Example: comps for a single- family home. 8 note: ranch style home- - - long low profile and large windows. Houseii2007 - photo online: adjust the comps. 5 for each comp, we adjust its sale price by making it identical to the subject property.
