Running Sales Comps to Value a Property

[Evan Cruz]

Hello,

When running sales comparables to find the value of a subject property, how much of a time difference in terms of year built should the subject property and the sales comparable have been built from each other?

For instance, if the subject property was built in 1952, should the sales comparable have been built 10 years from the subject property (1942-1962) or, say, 30 years apart from the subject property (1922-1982) or some other difference in the year built (50 years apart, 70 years apart, etc.)?

Thank you.

[Nadeem Alamgir]

Ideally, you want the comps to be within a 10-20 year age difference. This ensures similar construction, plumbing, electrical systems, and design. While it's still possible to use older comps if they’re in the same neighborhood, you’ll need to adjust for differences in condition, renovations, and updates.