The Comparable Method

Question 1

When would you use the Comparable method?

Answer 1

When there’s a sufficient amount of recent comparable evidence that has transacted in the area

Question 2

What are the SIX steps when collecting comparables?

Answer 2

1. Search and select
2. Confirm details
3. Assemble them into a schedule
4. Adjust them using the Hierarchy of Evidence
5. Analyse them to form an opinion of value
6. Report value and save them

Question 3

What is the Professional Standard on the Comparable method?

Answer 3

RICS PS: Comparable Evidence in Real Estate Valuation 2019

Question 4

What does RICS PS: Comparable Evidence in Real Estate Valuation 2019 state?

Answer 4

“The Valuer should use professional judgement to assess the relevance of evidence on a case-by-case basis”.

Question 5

What is the Hierarchy of Evidence?

Answer 5

1. Direct comparable evidence
2. Indirect comparable evidence
3. General Market Data
4. Other sources

Question 6

How would you collect comparables?

Answer 6

CoStar, EG and speaking to local agents