Module 5: Comping & Valuation

Making Adjustments

Learn the exact dollar values to add or subtract for bedrooms, bathrooms, square footage, condition, and features

Adjustment Value Guide

Industry-standard dollar adjustments for common property differences

Bedrooms

Each additional bedroom adds significant value, especially going from 2 to 3 bedrooms (minimum for family buyers).

Per Bedroom

$10,000 - $15,000

Higher in premium markets

2BR → 3BR Jump

$15,000 - $20,000

Most valuable addition

Example: Comp has 4 bedrooms, subject has 3 bedrooms → SUBTRACT $12,000 from comp (comp is better)

Bathrooms

Full bathrooms add more value than half baths. 2-bathroom minimum is standard for 3+ bedroom homes.

Full Bathroom

$8,000 - $12,000

Tub or shower included

Half Bathroom

$4,000 - $6,000

Toilet and sink only

Example: Comp has 2.5 baths, subject has 2 baths → SUBTRACT $5,000 from comp

Square Footage

Adjust based on price per square foot in the neighborhood. Calculate: (Comp SF - Subject SF) × $/SF

Budget Markets

$40 - $60/SF

Lower-end neighborhoods

Standard Markets

$60 - $90/SF

Most common range

Premium Markets

$90 - $150+/SF

Top-tier areas

Example Calculation:

Comp: 1,800 SF | Subject: 1,600 SF | Market rate: $75/SF

Difference: 200 SF × $75/SF = $15,000

Adjustment: SUBTRACT $15,000 from comp (comp is larger/better)

Garage

Garages are highly desirable. Attached garages worth more than carports or detached.

1-Car Garage

$5,000 - $8,000

2-Car Garage

$10,000 - $15,000

3-Car Garage

$18,000 - $25,000

Swimming Pool

Pools add value in hot climates (TX, GA) but can be neutral or negative in colder areas. Also consider maintenance burden for buyers.

Hot Climate States

$10,000 - $20,000

TX, GA, FL, AZ

Premium Neighborhoods

$20,000 - $40,000

Where pools are expected

Warning: In budget neighborhoods, pools can sometimes reduce value due to maintenance costs. Be conservative.

Condition & Renovation

The biggest wild card in comping. A fully renovated home vs a distressed fixer can vary $50K+ in same neighborhood.

Fully Renovated

+$30K to +$60K

New kitchen, bathrooms, flooring, paint, appliances, fixtures

Updated (5-10 years old)

+$15K to +$30K

Good condition, some updates, clean and functional

Average/Original

Baseline ($0)

Original finishes, dated but functional, needs cosmetic work

Needs Work

-$10K to -$25K

Deferred maintenance, repairs needed, cosmetic issues

Distressed/Major Issues

-$30K to -$80K+

Foundation, roof, mold, fire damage, structural problems

Other Features

Miscellaneous features that add or subtract value

Finished Basement +$10K - $25K
Covered Patio/Deck +$5K - $10K
Fireplace +$3K - $8K
Premium Lot (corner, cul-de-sac) +$5K - $15K
Bonus/Flex Room +$8K - $12K
Master Suite Upgrade +$10K - $20K
Premium Appliances +$3K - $7K
Smart Home Features +$2K - $5K

The Golden Rule of Adjustments

If the comp is BETTER than your subject property, you SUBTRACT value from the comp's sold price.
If the comp is WORSE than your subject property, you ADD value to the comp's sold price.

The goal is to adjust each comp to reflect what it would have sold for if it were identical to your subject property.