An agent’s trying to set a fair price for a three-bedroom home tucked into a quiet neighborhood. It has two bathrooms, about 1,700 square feet of living space, a pool out back, and was built in 2006. To figure out its value, you line it up against a few recently sold homes nearby, AKA comparables or comps.
Adjustments: This home is a bit larger by 150 square feet. At $200 per square foot, that adds $30,000. It's also six years newer, which trims $6,000 off the adjustment. On the other hand, it doesn't have a pool, so you add $30,000 for that missing feature.
$382,000 (Sale price) + $30,000 (Pool) - $30,000 (Size) - $6,000 (Age) = $376,000
Adjustments: This one has an extra half bathroom, valued at $10,000. Since it's two years older, you add $2,000 to even things out.
$390,000 (Sale price) - $10,000 (Extra bathroom) + $2,000 (Age) = $382,000