Thursday, July 23, 2015

Home Buyers MUST Learn to Differentiate between Sales and Comparable Sales.

Updated 02-23-2016

A list of sales - by default - does not become comparable sales ("comps"). Sales - even from the same neighborhood - must be quantitatively adjusted for characteristics and time to become comps. Once adjusted, the differences in property characteristics, distance and time (9/2014 and 9/2015 sales are not the same) become irrelevant. 

So, ask your Broker to show how the comps have been adjusted. Here is a snapshot of the adjustment process:

(Click on the image to enlarge)
Visit the Homequant site and use your comps selection and adjustment to value your own subjects:

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