Want the science art of doing Comp’s (“Comparable Sold Properties”) in a nutshell?

It’s placing a given (“subject”) property on a continuum, between the home just below it in price, and the one immediately above.

What could be simpler, right?

“This and That”

Ahhh, but which two homes are those ” and exactly how much above or below the subject home are they? (In Realtor-speak, what are the adjustments?).

Further muddying the waters: ¬†sometimes the upper and lower Comp’s are really composites of multiple properties, because no one property is similar enough.

Of course, if a property is sufficiently dissimilar, it’s not a Comp at all.

As I like to put it, “you can compare a Braeburn apple to a Granny Smith . . . but not to an orange.” ¬†(sorry)

See also,¬†“Why the Neighbor’s Home Isn’t a Comp“; “Real Estate Bracketing ” Advanced Beginner Version;” “The Science ” and Art ” of Doing Comp’s“; and ““Bracketing,’ Explained.”

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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