Property Valuation
Paired sales analysis is used by Pennsylvania appraisers to:
ACompare two properties sold to the same buyer
BIsolate and quantify the value contribution of a single feature by comparing otherwise similar sales✓ Correct
CAnalyze two competing offers on the same property
DCompare a subject property's selling price to its list price
Explanation
Paired sales analysis compares two very similar sales that differ only in one characteristic (e.g.
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Key Terms to Know
Comparable Sales (Comps)
Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
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