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.”
