The most common way to value residential homes is by the The Sales Comparison Method of Real Estate Appraisal and Valuation.
Comparable properties will be selected and based on several features. First, properties that are in the same area or as close as possible will need to be found. Active and Sold properties may be considered, but the sold properties selected need to have been sold as recently as possible.
Once some comparable homes in the local vacinity of the subject house have been discovered, they will need to take into consideration features that need to be compared and adusted for. Each comparable home will be taken into consideration and add or subtract the value of features in comparison to the subject property. These features may include pools, spas, beds, baths, amenities, etc. The appraiser and the real estate agent approach this comparison in similar manners, though the appraiser usually goes into it more in-depth.
There are many factors that can cause a property to sell for higher or lower pricing than justified by the property characteristics or the comparable properties near by. Be sure to make adjustments for prices that could have been influenced by unusual situations (divorce, death, etc.).
