Ever wonder why a comp in an appraisal report seems totally different from the property being appraised? Here’s why:

In an ideal world, every comparable (comp) would be nearly identical to the property being appraised. But when unique factors are involved—like train tracks, highways, or flood zones—finding perfect comps isn’t always possible.​

I recently appraised a 3,600 sq. ft. home that backed up to train tracks. There aren’t many homes with this same feature, so I had to use a smaller comp on a different lot size—because it also backed up to train tracks.

Even though the comp seemed dissimilar, it allowed me to perform paired sales analysis—comparing homes with and without train tracks. This helps determine the potential discount buyers might apply. For example, homes near train tracks might sell for 5% less than similar homes further away.

The seemingly mismatched comp helps answer key questions:

For a deeper dive into surprising comps, check out our podcast episode on this very topic here! If you have additional questions, feel free to email us at appraiserpool@gmail.com – we’re here to help!
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