Joe is correct; comps are more of an art that a science. Some properties are quite easy and others can be very difficult. Here are some good comp parameters that will be appropriate for most properties;
YEARS
5 years newer, 5 years older. Home built in 1999, comps are from 1994 to 2004. If the property is older than 1970, I go 10 years older, 10 years newer
SIZE
200 Square feet higher and lower. 1,800sf, I run 1,600 to 2,000. If home is larger than 2,500 ft2 or smaller than 1,200 ft2, I just go with +/- 10%
COMPS (Solds)
I always go 6 months back, unless I can not get at least 3 solid Sold comps, then I go back 12 months
AREA
I always start with the same subdivision of the property , if not have enough properties I move the months sold to 12 months. If still not enough, revert back to 6 months and move out by map to ½ mile, then by ½ mile increments, till I get at least 3 solid Sold comps.
BEDROOMS AND BATHS
I try to keep with the same number of bedrooms and baths
GARAGE SPACES (I only enter this in on high end comps)
Keep with the same number of Garage Spaces
Dan Brunner
Realtor/Investor/Consultant
www.3dmrinc.com
