“More Than This, Less Than That”: The Art of Pricing Homes

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.”



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