Running comps is a brutal game
The amount of work and information needed goes up dramatically depending on the accuracy you would like. Sometimes the information is simply not available within the geographic range you would like. What drives up a price significantly in one region may have a net zero effect elsewhere.
Schools make a huge difference. That is how I define my wider (and sometimes only) geographic area. A poorly rated school makes no difference to people without children, but generally is considered to pull the value of property down.
Square footage is another good indicator of relative value. Is a 2200 sq foot property 10% more valuable than a 2000 sq ft one? Not based solely on size in most cases.
What condition is the property in? What upgrades are on the house? All of this is relative to the other houses in the area. A pool in Alaska doesn't add much, if any value, unless it is indoors and usable year round.
Another consideration is the market trends. Are sale prices generally going up, down or not moving at all? What causes houses in the area to sell?
Comments (2)
Most of running comps is a research game.
Does having a 2 car garage matter? Most likely. Do buyers care if it is attached? Maybe. Dig up sold records for just about any time period and make a comparison. You may find that the "attached" portion of the aforementioned garage is worth 10k in zip code 12345 but $0 in zip code 12346.
Plus it isn't super scientific, 19 sold homes in a 365 day span might be a trend. If you can see the "trend" over 185 sold homes in 10 years, you have a definitive selling point.
Aaron Montague, almost 10 years ago
Thanks for sharing your thoughts. Beyond schools and square feet what are other indicators you use when comparing homes?
Walter Pape, about 10 years ago