What is the Matched Pair Sales Technique used for?

The Matched Pair Sales Technique is primarily utilized for establishing value differences between similar properties. This method involves comparing two similar properties that have recently sold, one with a specific feature or upgrade and the other without. By analyzing the price difference attributable to those features, real estate professionals can quantify the value of that particular amenity.

This technique is especially useful because it provides a direct approach to understanding how specific characteristics affect property value in a given market. For instance, if one house has an updated kitchen and sells for significantly more than a comparable house without that renovation, the difference in sale prices can help establish the value of the kitchen upgrade.

While evaluating historical sales data, determining property appreciation rates, and creating current market analysis are important aspects of real estate professionalism, they do not specifically focus on the price differential created by comparable property features, which is the essence of the Matched Pair Sales Technique.