Adjust each comp's value to account for differences from your subject property. This is the most critical step in comping.
Comp is WORSE than subject?
ADD value to the comp's price
Comp is BETTER than subject?
SUBTRACT value from the comp's price
Subject: 3 bed / 2 bath / 1,600 sqft / 2-car garage / no pool
Comp sold for $240,000: 4 bed / 2 bath / 1,750 sqft / 2-car garage / pool
-$12,000 (comp has extra bedroom)
-$7,500 (comp is 150 sqft larger × $50/sqft)
-$15,000 (comp has pool, subject doesn't)
Adjusted Value: $240,000 - $34,500 = $205,500
You're adjusting the COMP to match the SUBJECT. Think: "What would this comp have sold for if it were identical to my subject property?"
Adjust comp values for differences in beds, baths, sqft, condition, and features to accurately reflect your subject property.
If comp is BETTER than subject → SUBTRACT from comp price
If comp is WORSE than subject → ADD to comp price
Goal: Adjust comp to show what it WOULD have sold for if it matched your subject.
2→3 BR jump worth more (~$15-20K)
Half bath = $4-6K
Use neighborhood $/sqft rate
2-car = $10-15K total
Higher in hot climates (TX/GA)
Dated → Renovated
Subject: 3/2, 1,500 sqft, no pool, needs updates
Comp: 3/2, 1,700 sqft, pool, renovated, sold for $280,000
Comp Sale Price: $280,000
- Sqft difference (200 sqft × $75): -$15,000
- Pool (comp has, subject doesn't): -$15,000
- Condition (renovated vs needs work): -$35,000
Adjusted Comp Value: $215,000
Adjustments are the most important step. A renovated comp selling for $300K tells you nothing about a distressed property until you adjust for condition differences.