Find comparable sales
Compare properties buyers would realistically substitute for the subject property. Start with recent closed sales in a relevant area, then examine size, layout, condition, parking, lot, and meaningful location differences. A nearby renovated home is not automatically a comparable for an unrenovated property.
Separate as-is value from after-repair value. Your proposed scope must reasonably produce the condition assumed in your resale estimate. Active listings show competition and seller expectations; closed transactions provide stronger evidence of completed pricing.
Use a range instead of false precision. Ask your agent to explain exclusions and adjustments. Price per square foot can be a cross-check, but small houses, additional bathrooms, condition, and layout can distort simple averages.
Three relevant renovated sales are $175,000, $180,000, and $185,000. A $220,000 listing with an extra bathroom and garage does not justify assuming a $220,000 resale.
Decision checklist
- Select closed sales a buyer would treat as genuine substitutes.
- Compare condition, layout, location, and other important differences.
- Develop a value range and document why irrelevant sales were excluded.
Check your understanding
Are active listing prices proof of completed market value?
Show the answer
No. Closed relevant sales provide evidence of completed transactions; active listings also show competition.
Your next action
Build a comparison sheet for three closed sales. List differences and give a low, base, and high value estimate.
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