Direct Sales Comparison - Valuing Houses Using Direct Sales Comparison

6 important questions on Direct Sales Comparison - Valuing Houses Using Direct Sales Comparison

What are the value-affecting variables for determine comparables

Location, Date of selling, Size, Age

What is the right search area for comparables

The closer the better rule, neighborhood level.

What is the right time period for the selection of comparable

In practice, appraisers seldom go back more than two years. Also the closer the better rule applies
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Which physical characteristics should match in the comparison

(1) The size and design of the house, if possible also the number of bedrooms & bathrooms
(2) The size of the lot
(3) The age of the house

What is the right age-spend of comparable buildings

The narrowest possible ages around the age of the subject

How many comparables are enough for a good comparison

Three should be enough, more than three does not influence the accuracy of the valuation

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