paired sales

paired sales

An appraisal technique used to find the value of a particular feature within a property, such as a two-car garage.If the appraiser can find two recently sold houses that are virtually identical except that one has a two-car garage and one does not, these are called paired sales. If the two-car garage is the only significant difference in the two,then the difference in the sale price must be attributable to the garage.In that manner,one may assign a value to a two-car garage.As a result, when employing the comparable sales method of appraising a house, the appraiser may confidently assign values to the various features that differ in the house under consideration from the houses that sold recently.

References in periodicals archive ?
Therefore, measuring market reaction requires the use of methods other than paired sales to address how buyers in the market may react regarding demand and the price they are willing to pay.
Ideally, impact studies rely on paired sales to demonstrate diminution in value.
It is expected that the impact of the mortgage crisis on paired sales with a prior foreclosure will show up only with a delay, as it takes time for homes purchased in a foreclosure sale to be sold or turned over again by investors or homeowners.
Well known to property appraisers are the Paired Sales Analysis used by Jackson (2001), Contingent Valuation Analysis (CVA) used by Carson, (2000); Clinch and Murphy, (2001), Option Pricing Model by Lentz and Tse (1995) and the Hedonic Model developed by Rosen (1974).
The total number of paired sales from 1991 to 2006 in the area to be annexed in 2002 was 5,404.
Thirdly, the paired sales analysis was applied to a dynamic west-side suburb of Cleveland where new construction impacts the relocation market significantly.
* Paired sales analysis, including sale/resale analysis;
The draft explains that in the absence of sufficient data to perform a paired sales analysis.
HPIs that use this "paired sales" method have limitations in terms of the size of the geographic areas they can report on.
Also covered are ways to use property listings, improved property sales and paired sales analysis to estimate land value and the selection of appropriate units of comparison.
Previous reviews have divided the literature into three categories: statistical price models, survey-based research, and other appraisal methods, such as paired sales and resale analyses.
"Methods appraisers should employ include paired sales analysis, environmental case studies, multiple regression analysis and income capitalization analysis using environmental risk premiums," he explains.