Elements of Comparison

An Element of Comparison is a categorization of property characteristics that causes real estate prices to vary.  Some elements of comparison are:

 

•Property rights

•Financing terms

•Conditions of sale

•Date of sale (or market conditions),

•Location

•Physical characteristics

 

The most common unit of comparison for a single-family residence is square feet.  There are, however, many units of comparison depending on the property being appraised.  Here are some examples.

 

•Front foot for commercial property

•Acres for land

•Square feet for land

•Lake front for lake properties

•Rooms for hotels

•Units for apartments

•Seats for theaters and churches

•Cells for jails

•Cubic feet for warehouses

•Income for businesses

 

An appraiser may use one or multiple units of comparison to assist in evaluating a property.

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