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Sales Comparison Approach In Real Estate – Zing! Blog by Quicken Loans

What Factors Are Considered As Part Of The Sales Comparison Approach?

Factors that influence the sales comparison approach include the state of the market, location of the subject property, subject property features and more. Let’s take a look.

Current Market State

Market conditions can be tough to pin down, which is why it’s important to have comp sales dates as close together as possible. Outdated comp dates don’t give you accurate pricing for the current market. The bottom line is that the current market state is taken into consideration as part of the sales comparison approach for a subject property.


The location of the subject property also matters. Comps should be as close as possible to the subject property. Ideally, the comps will be located in the same neighborhood. If it’s not possible to get them in the same neighborhood, going a neighborhood or two over (with similar schools, crime rates and other features) may be the only option as part of the sales comparison approach.

Property Features

Certain features of the subject property are taken into consideration as part of the sales comparison approach, including the number of bedrooms and bathrooms, number of garages, square footage and lot size. The comps should match up with the same features.

Square Footage

Square footage should also be the same as the comparative properties. You can divide the adjusted price of each comp by its square footage to determine the price per square foot to account for slight differences.

Age And Condition Of The Home

The age and condition of the home, based on the year the house was built, materials used in construction, renovations done and more can influence the sales comparison approach.

Ownership Interest

An ownership interest gives property owners the right to use their properties how they wish. In other words, if you own your own home, you can do whatever you want with it. For example, you can sell it, live in it or rent it out. If there are multiple owners of a property, it can affect the sales comparison approach as well.



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