What are comparables?
The “comparison approach” is looking at the prices paid for similar properties and what a purchaser is willing to pay for it. While not all homes are exactly alike, values are given to each comparable property based upon location, square footage, lot size, the age of the home, market conditions (are values rising or falling?), construction quality, and other things like fireplaces, in-ground pools, garage size, deck, patio, porch, central air, etc.What does “market value” really mean?Market value is the “most probable” price that a willing seller and willing buyer are able to negotiate. It is based upon these assumptions: • Buyer and seller are motivated • Both parties are well-informed and well-advised of values • A reasonable time is allowed for other people to view the property • Payment is made in cash or mortgage (however, adjustments are made for unusual types of financing) • That the sale is an “arms-length” sale (buyer and seller are completely independent and have no connectio
