What does the Matched Pair Sales Technique involve?

The Matched Pair Sales Technique is a method used in real estate appraisal that involves comparing two similar properties, with the distinction that they differ by just one feature or characteristic. This technique allows appraisers to isolate the effect of that specific feature on the properties' values. For example, if one property has a renovated kitchen while a comparable property does not, the appraiser can analyze the sale prices of both to determine how much value the renovated kitchen adds. By controlling for all other variables, this method provides clear insights into how individual features affect property value.

The focus on just one differing feature is crucial because it simplifies the comparison and helps in making a more accurate valuation. It leverages the assumption that all other factors are equal, allowing appraisers to derive a conclusive difference based solely on the variable in question, such as a pool, upgraded appliances, or a different flooring type.