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Residential Units of Comparison - A Common Denominator

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  • Arlen C. MILLS

Abstract

The common denominator refers to the units of comparison that are used to compare a sale property to the subject and to compare sale properties to each other. In order to provide an accurate analysis, evidence must be developed to indicate what units of comparison best reflect the actions of residential buyers and sellers in a given market. Participants in different markets will not depend on the same units of comparison when making value decisions. Determining which units of comparison are most appropriate for a given market is basic to making effective price comparisons that are the result of applying a reliable common denominator.

Suggested Citation

  • Arlen C. MILLS, 2016. "Residential Units of Comparison - A Common Denominator," The Valuation Journal, The National Association of Authorized Romanian Valuers, vol. 11(1), pages 48-63.
    • Handle: RePEc:vaj:journl:v:11:y:2016:i:1:p:48-63
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    More about this item

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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