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Comparables
Properties that are similar to the subject
property. In real estate, a real estate agent checks the selling
prices of comparables to help determine the value of a property
he is appraising.
Many factors go into determining which properties
can really be considered comparables:
* geographic area
* number of bedrooms and bathrooms
* square footage of the land
* square footage of the building on the land
* garage, pool, tennis court, or any other
features
* how long ago the sale was
Obviously, the best properties to use as comparables
are those that match in every way. If the property next door, with
the exact same layout and style, recently sold for $100,000, then
that is a great indicator of the value of a property.
Real estate agents generally try to find 4
or 5 comparables to get the best indicator of the value of a property.
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