A comparable property is not simply another apartment located nearby. The strongest comparables usually share several characteristics with the property being valued:
- property type;
- location and micro-location;
- usable area;
- number of rooms;
- ownership type;
- floor and presence of an elevator;
- building condition;
- apartment condition;
- balcony, terrace, parking or cellar;
- approximate listing period.
A fully renovated apartment should not be compared directly with an apartment requiring complete reconstruction without adjusting for the difference. Similarly, two apartments located only one kilometre apart may belong to very different micro-markets.
The purpose of comparable analysis is not to find identical properties. Identical properties rarely exist. The purpose is to identify the most relevant available evidence and explain the differences.
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