Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Commercial Comparable Sales -- Matched Pair Analysis

By Patrick O Connor Subscribe to RSS | December 23rd 2011 | Views:

Commercial comparable sales can be used to perform analysis regarding a variety of factors and issues impacting the value of real estate. The basic technique is to identify two sales that are identical except for the issue being evaluated. For example, to determine trends in market value over time, the sale price of a tract of land at two points in time can be compared to determine whether values are increasing or decreasing.

The following is a list of some items that can be analyzed utilizing the matched pair technique:

Market conditions

Corner versus non-corner

Size (land or buildings)



Window air conditioner versus Central air conditioner

HVAC versus a chilled water cooling system for apartments

Original kitchen versus remodeled kitchen

Swimming pool

Condominium on the 4th floor versus a condominium on the 20th story of a high-rise building

Following are the steps to perform a matched pair analysis:

Locate comparable sales identical in all regards except for the issue being evaluated. Locating meaningful data is the most difficult part of performing a matched pair analysis. It is ideal to have two or three sets of matched pairs to evaluate a single factor. In practice, it is often difficult to develop one truly identical matched pair. In many cases, it is necessary to make adjustments for an additional item before performing the matched pair analysis. For example, when comparing an apartment complex with a chilled water cooling system versus an apartment complex with separate HVACs, it may be first necessary to make adjustments for another factor such as age or size.

Evaluate the difference in sales price between the matched pair. The comparison can either be done on a gross sales price basis or utilizing a unit of measure (such as sales price per square foot or per unit).

Review whether the result is reasonable. For example, a matched pair which indicates a swimming pool (which cost $30,000 to install) adds $50,000 to the market value of a home is likely not reasonable.

Match pairs can be a valuable tool in evaluating the impact of factors affecting the market value of real estate. Other options for analyzing these factors include interviews with brokers, buyers, sellers and other market participants, analysis of depreciated cost differences and capitalizing differences in rental rates.

Patrick O Connor - About Author:
Need comparable sales data? OConnorComps has thousands of current San Antonio commercial comparable sales.
Is finding data too time consuming? OConnorComps has the Houston commercial comparable sales you have been looking for!

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Real Estate Articles Subscribe to RSS

Reasons to buy commercial property in India
Published by Mike Nicholson on June 12th 2012 | Real Estate
Although there are numerous investment avenues in India to invest in, but there is no guarantee that...
Industry Trends for NCR commercial and residential properties
Published by Rahul on August 14th 2012 | Real Estate
The National Capital Region, commonly called Delhi/NCR, continues to be a dynamic hub of real estate...
Average home sales prices fell by 4.1 percent in October.
Published by Kimberly Jones on January 4th 2012 | Real Estate
Average home sales prices fell by 4.1 percent in October....
Tips on running a commercial property management firm
Published by Carolmoore on March 1st 2012 | Real Estate
Owning property can make you set for life. Considering the high prices of land, owning a piece can b...
Lease your property for commercial strata management
Published by Chris Whelan on January 25th 2012 | Real Estate
Everyone should follow some qualified process during leasing their commercial strata management prop...
Having Vendor Finance to obtain Quick house sales
Published by Kim Valerio on January 7th 2012 | Real Estate
If you have a London property you are trying to sell, there are several times in history from where ...
Seeing the huge growth in commercial property in Bangalore
Published by Prop Tiger on June 14th 2012 | Real Estate
Bangalore has been thought of as an IT/ITeS hub, rightly thus because the major demand for commercia...
Looking to buy a commercial property in Gurgaon?
Published by Mike Nicholson on March 20th 2012 | Real Estate
Do you want to have your office at a prominent location where you can proudly invite your clients? D...
The attractive features of the commercial real estate investment organization
Published by Ema Sis on July 25th 2012 | Real Estate
The commercial real estate investment usually are rising demand since the commercial property is usu...
Buying commercial properties in metro cities
Published by Maaya on April 4th 2012 | Real Estate
If a person have a housing property in a big metro cities like Pune, Chennai or Chandigarh, they him...