When determining comps, a general rule of thumb is to choose a property where the square footage does not go beyond 10 percent higher or lower than that of the property being evaluated.
The next step is to analyze comparables in the area and research future developments. Otherwise known as “comps,” these assets refer to prices paid for recently sold properties that are similar in location, size, and style. Analyzing comps will help you determine the current market value of a property. When determining comps, a general rule of thumb is to choose a property where the square footage does not go beyond 10 percent higher or lower than that of the property being evaluated. This will allow for the most accurate comparables possible. Read more on tips for pulling the most accurate comparable sales.