20% +/- Square footage "Rule" for Comparing Comps

20% +/- Square footage "Rule" for Comparing Comps

Member since 2019 · 1 post · 0 votes

Can anyone point me to any written rule or guideline that specifies the max percentage square foot differential between two properties for the purposes of calculating an appraisal?   I've seen lots of posts stating that comps should be within 20%, but it would be very helpful to me if I could find some authority for that number. I've run into a situation on a subject property where the comps used are at 30 to 45% of the size and I'm looking to contest. For what it is worth, there are other properties closer to the subject in size, but those sales are more than a year old.

Any help GREATLY appreciated. Thanks!

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Nadia DaggettBusiness Member
Real Estate Broker · Tampa, FL · Member since 2019 · 92 posts · 60 votes
4y

Yes, the same. This is my criteria for comparing properties to get as close as possible for the appraiser: 

1. 10% - 20% of comparables sqft   

2. Within 10 years of home built    

3. Closed sales within 6 months. Going back 12 months is ok but 6 months is preferred   

4. Within .5 mile or 1 mile radius is ok. 

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  • Flipper/Rehabber · Charleston SC · Member since 2019 · 78 posts · 43 votes
    7y

    When I'm comping a property I try to get it even closer than +/-20%, generally sticking to +/- 10% sq.ft. The goal is to find sales that are as comparable as possible so I would only increase that number if you can't find any comparable sales that are that close in square footage. 

  • Nadia DaggettBusiness Member
    Real Estate Broker · Tampa, FL · Member since 2019 · 92 posts · 60 votes
    4y

    Yes, the same. This is my criteria for comparing properties to get as close as possible for the appraiser: 

    1. 10% - 20% of comparables sqft   

    2. Within 10 years of home built    

    3. Closed sales within 6 months. Going back 12 months is ok but 6 months is preferred   

    4. Within .5 mile or 1 mile radius is ok. 

  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    4y

    I stick with 10% of total sf of the home but abide by very similar metrics as @Nadia Daggett does. 

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