Definition
Paired sales analysis compares two similar properties with one key difference to isolate the value impact of that difference. It provides market proof of feature value without estimation.
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Find my pathAbout this term
Paired sales analysis is used to quantify the value of specific features by comparing two properties that are identical except for one significant difference. For example, comparing two nearby homes of identical size, age, and condition where one has a pool and one doesn't reveals the market value of a pool. This technique is particularly useful for establishing adjustment amounts when sales data is limited. Paired sales analysis is more reliable than attempting to estimate values for features without market evidence.
Pro Tip
When defending property value, look for paired sales proving value of specific improvements.
Example
Two identical homes on the same street sold within one week—one without a recently updated kitchen for $420,000, and one with an updated kitchen for $432,000. This paired sales analysis indicates the market value of a kitchen update is approximately $12,000.