What Makes a Good Comparable Sale

What makes a good comparable sale for a Property Assessment Appeal? 

The following is a list of considerations in no particular order. 

·       DO NOT pick the house that simply sold for the least amount of money without consideration of other factors.  There may be a good reason that the either the sale price does not reflect current market value or there is some characteristic that is affect market value. 

·      DO NOT compare Assessments.

·      DO NOT make separate comparisons of land assessments and building assessments. The State of New Jersey does not separate the 2 for assessment or sale purposes.

·      SIMLARITIES: Try and pick homes that have similar construction style. (Colonial, Ranch, Split, etc.)

·      SALE DATE: Try and pick homes sold in your direct neighborhood in the time period allowed for evidence.

·      PROXIMITY: The distance of your comparable sale to your home.  Closer is always better.

·      BUILDING SIZE: Try to compare similar square footage of living area measured from the exterior.

·      LAND SIZE: Try to compare similar lot size or acreage, road-frontage and depth.

·      AMENITIES: Try to compare properties with similar amenities i.e. garage, pool, deck, patios, etc.

·      AGE: Try to compare properties with similar age and level of depreciation (Actual and Effective Age).

·      VIEW: Try to compare properties with similar views and access (i.e. water, skyline, parks, etc.)

·      TRAFFIC: Try to compare properties with similar exposure to road traffic. (Residential a minus, Commercial a plus)

·      ZONING: Try to compare properties with similar permitted uses.

·      NEIGHBORHOOD: Try to compare properties with similar neighborhood conditions and characteristics.

·      PHOTOGRAPHS:  Photos are often very helpful in conveying a point. Photos used as evidence must be depict the same conditions as October 1^st of the pretax year.

·      THIRD PARTY DATA: Data such as Zillow and MLS listings are a good source for information of homes sold recently but the information may not be correct.  These listings are marketing tools and the information and photos may not truly represent the actual condition of the subject property.