What Is a Comparable in an Appraisal?

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A comparable, simply put, is something that's similar. Find out what a comparable is in an appraisal with help from a business consultant in this free video clip.

Part of the Video Series: Finance & Business Advice
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Hi, my name is Alexis Guerreros, I'm a business consultant. Today, I'm going to talk to you about a comparable especially when it comes to an appraisal. Now this sometimes comes up in real estate probably the most often. A comparable is something that's similar. So let's say you're selling a house that has two bedrooms, one bath, one fireplace, and a backyard. Now a comparable would be something that has all of these but also might be in the same neighborhood, might be of the same type of structure, maybe it'd be brick or wood, or maybe colonial or something other than that. Something to keep in mind is if something sold but maybe had a slightly bigger backyard or had two fireplaces, or maybe has a two bath, you can do the average. So that product sold for 1.2 more than what you were selling, you could just take that .2 off or whatever the value is of the additional backyard and fireplace. Easiest way to look at that is look at a multitude of the products that were sold and decide how much a value is placed on each of these. Now that's something typically an appraisal would do. If you're doing it yourself, make sure that you consider everything that's involved in the product you're selling so you can give yourself the same value. Good luck with your appraisal.

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