Market Sales Analysis - Comparables,
Information about Market sales analysis – comparables
Market sales analysis is the examination of prices in which similar kind of properties are sold recently in the same area. The agents who deal with real estate properties perform the market sales analysis – comparables for their clients in order to assist them to determine the price to sell the house or to offer a price when they are planning to buy. There are many methods used by the agents to do a complete market sales analysis.
Different types of methods used
Sales adjustment grid– The most commonly used method to do the market sales analysis- comparables by the estate appraisers and the estate agents is the sales adjustment grid. It uses few properties that are sold in the immediate vicinity to estimate the approximate value of the property that you are planning to buy or sell. There might be few adjustments made on the comparables and it is done by simple survey method, matched-pairs analysis or trend analysis.
Multiple regression method– More advanced appraisers and researchers uses statistical techniques on this method. They usually compare larger number of properties that are more dispersed geographically to determine the magnitude and the significance of the impact of various attributes on the value of property.
Many studies have shown that both these methods are the same theoretically with the first one applying more of heuristic method while the second one uses statistical techniques. For the situations which are more complex like litigated property or contaminated property, the methods used will be repeat sales models, case studies, survey research, etc.
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