Residential: One to Four Homes

Look at similar properties

Comparable sales, often called comps, are sales of properties similar to the one being evaluated. Location, size, condition and other differences matter. A nearby sale is not automatically a good comparison, and an asking price is not the same as a completed sale.

Separate today’s value from the plan

As-is value describes the property today. Completed value describes the property after the proposed work. A renovation budget does not automatically add the same amount to value. For a rental, also examine rents, leases and expenses.

Check the property’s details

A condo or townhome may have association dues, shared maintenance or restrictions that affect the project. Confirm the lawful number of units and planned use. Personal-use homes and business-purpose investment properties require different financing reviews.

Your quick checklist

• Identify the property and lawful unit count.
• Compare condition, size and location.
• Review association costs or restrictions where relevant.
• Separate current value, finished value and expected rent.