Paired Sales Analysis | Propertylogy

Paired Sales Analysis

By on October 10, 2019

A paired sales analysis is a valuation technique to estimate the value of particular features of a property when compared to another property with almost identical features.

Such procedures in direct sales helps an appraiser determine the value that specific features of a house adds to it’s market value.

For example, if two similar properties located on the same street was recently sold on the open market at $180,000 and $190,000, and the first has an empty grass patch on the premises while the other has built a lush garden on that area, then it can be said that the garden added $10,000 of value to the property price.

It can also be judged the other way in that an empty grass patch would reduce a home’s value by $10,000.

With such data available to an appraiser, he or she would be able to confidently assign values to houses and their features to get a better estimate to what the property is truly worth.

This can play a huge role in determining the loan amount a home buyer can obtain from a lender.

It also prevents a home seller from under-pricing his house.

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