Two figures can look comparable while answering different questions. A listing price expresses what is being asked. A declared or recorded amount describes what a source states for a transaction. Market value requires an estimate tied to a date and a set of conditions. Before placing those figures in one table, identify what each represents. That distinction changes how much weight a figure can carry when setting a price or assessing an offer.
Give every figure a precise label
A listing provides an asking-price reference. Keep its date, source and description, and check whether several listings refer to the same property. Repeating an offer across different platforms does not create several independent observations. An advertised reduction also does not establish that a sale took place at that amount.
If you have a declared or recorded price in a document, identify the document, property and date. That amount alone does not establish every payment associated with the transaction, the buyer's total cost or the property's current value. Do not automatically treat it as a fully verified closing price.
Check whether the properties are comparable
Geographic proximity helps select references, but it is not enough. Compare the specific location, access, area, property type, features and condition. Also examine what each offer includes and what documentary information is available. Describe any meaningful difference before using a reference to support a conclusion about another property.
When comparing prices per unit of area, check that the areas mean the same thing and that units are consistent. Land area and building area are not interchangeable. If an area or feature has not been confirmed, flag that limitation. A precise calculation based on uncertain information still carries the uncertainty of its inputs.
Assess the evidence and its limits
Each comparable should retain a record of its source, date, price type and relevant differences. Add what has been verified and what depends on information supplied by others. This distinguishes a useful reference from one requiring confirmation, instead of hiding that difference inside a single average.
Where evidence of a completed transaction is available, examine exactly what it establishes and which conditions are known. If the evidence consists only of listings, the analysis should say so. A partial sample can help organize questions and expectations, but it does not automatically represent every transaction in the market. Its usefulness depends on reference quality and visible limitations.
Use the comparison for a specific decision
When setting an asking price, ask which references support it and which differences explain the proposal. When reviewing an offer, distinguish its amount from its conditions and any costs still requiring clarification. An estimated value should show its date, supporting information and assumptions. It is not a promise of the price that will ultimately be obtained.
At STRATA, a consultancy with technical and legal support, we organize comparables and verifiable information so you can understand a price reference and its limits. The scope of the analysis depends on the property, available evidence and the decision you need to prepare for.
Original STRATA content
A guide developed from STRATA’s own social media content, expanded to help you prepare for a review of your property.
General information. Each transaction must be assessed in light of its documents and circumstances.