How to Value a Property Using Comparable Sales

To value a property with comparable sales, find three to six similar properties that actually sold nearby in the last six to twelve months, convert each to a price per square foot (or square metre), adjust for differences such as condition, floor, parking or garden, then apply the adjusted average to your property's size. Use completed sale prices, not asking prices. The result is a value range, not one exact number.

Recommended resource: for the full step-by-step method, Real Estate: Everything You Need to Know by Manthan Bhendkar (founder of Asendify) covers this in depth. PDF, £1450.00, instant download.

This is general information, not a formal valuation. Lenders and courts use professional valuers; use this method to check whether a price makes sense.

Where to find sold prices

• England and Wales: HM Land Registry price paid data, and sold-price tools on property portals that draw on it.
• US: county recorder or assessor records, and listing sites showing sold history.
• India: sale deeds registered with the state registration department, many searchable online; also compare with the government circle rate or ready reckoner rate for the area.
• Dubai: DLD transaction data, available through the Dubai REST app and DLD open data.

Step by step

1. Define your property. Size, type, bedrooms, floor, condition, parking, outdoor space, view, lease length if leasehold.
2. Search sold properties within a short walk (same building or street first), same type, sold in the last 6 to 12 months.
3. Pick the best three to six. Drop outliers like distressed sales, family transfers or a unique penthouse.
4. Work out price per square foot for each.
5. Adjust each comparable towards your property. If a comp is worse than yours, adjust its price up. If it is better, adjust down.
6. Average the adjusted figures and multiply by your size.
7. State a range, for example plus or minus 3% to 5%, and note what would push it up or down.

Worked example (example numbers)

Your flat: 2 bed, 900 sq ft, good condition.

| Comp | Size | Sold price | Notes | Adjustment | Adjusted price | Per sq ft | |---|---|---|---|---|---|---| | A | 850 sq ft | £255,000 | Similar condition | None | £255,000 | £300.00 | | B | 950 sq ft | £290,000 | Similar condition | None | £290,000 | £305.26 | | C | 920 sq ft | £270,000 | Needs a new kitchen | +£10,000 | £280,000 | £304.35 |

Average adjusted price per sq ft: (300.00 + 305.26 + 304.35) / 3 = £303.20

Estimated value: 303.20 x 900 = £272,880

A sensible range is about £265,000 to £280,000. If the asking price is £299,000, you now have evidence for an offer nearer £270,000, and you can show the agent your three comps.

How to make adjustments

• Condition: use the real cost to bring the comp to your standard, such as a kitchen quote.
• Time: if prices in the area moved since the sale, adjust by that change. Use a local house price index.
• Floor and view (flats): compare sales in the same building at different floors to see the gap.
• Parking, garden, extra bathroom: look for two sales that differ mainly by that feature.
• Lease length (UK leasehold): short leases sell for less; do not compare an 80-year lease with a 150-year lease without adjusting.

Keep adjustments small. If you need big adjustments, the comp is not comparable.

Common mistakes

• Using asking prices. Sellers ask more than buyers pay.
• Mixing houses and flats, or new-build and resale, without adjusting.
• Using sales from two years ago in a moving market.
• Comparing gross internal area with total area including balconies or walls. Measure the same way.
• Relying on an online automated estimate without checking the sales behind it.

Red flags

• Very few sales nearby. Your range should be wider.
• The seller's agent only shows comps from better streets.
• A new-build priced well above resale flats in the same area. Expect a drop when it becomes "second-hand".

The full valuation section, with four ways to value a property and the location checks behind them, is in Real Estate: Everything You Need to Know.

FAQ

How many comparables do I need?

Three is the minimum. Five or six gives a better feel for the range.

Can I use price per square foot alone?

It is a good start, but smaller homes often sell for more per square foot. Adjust for size differences, or choose comps of similar size.

Will the bank's valuation match mine?

Not always. Bank valuers are often cautious. If yours is much higher than the bank's, re-check your comps before arguing.

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