What is paired sales?

Answer 1

Paired sales is a technique used by real estate appraisers to find the value of a property feature by comparing 2 similar properties that differ by only that single feature. The difference in price between the 2 properties may be taken as the value of that feature. The more features that are taken into account when determining similarity, the more accurate the resulting value typically is.

Paired sales analysis may take into consideration many properties, and use the collection of different prices to find an "average" or "median" market price of that feature. When selecting many properties that are highly similar except for a single feature, the calculated value of that feature can be very accurate for the market.

Finally, new techniques have been recently introduced to take advantage of the immense processing power available to analyze "big data" sets of market properties. In these scenarios, paired sales analysis is used to find values for many features for a large number of properties simultaneously. While this technique appears to be similar to multiple regression analysis, it is far more powerful and can even incorporate credible results derived from other sources to bolster the results. One example of this new technology can be found here: gandysoft.com/pairs

The use of paired sales has gone through many phases over the last 100 years or so, and with the advent of computers and the easy access to large amounts of good data, amazing results can now be achieved.

Answer 2

Paired sales analysis is a method used in real estate appraisal to estimate the value of a specific feature by comparing the selling prices of similar properties that differ only in that feature. By isolating the impact of a particular feature, such as a swimming pool or a renovated kitchen, on the selling price, appraisers can more accurately determine its contribution to the overall value of a property.