Inside the Mind of an Appraiser: How We Actually Pick Comparable Sales (and No, It’s Not Random)
Ever had a client or agent ask, “Why didn’t you use the sale down the street?”
Yeah… we get that one a lot. Truth is, appraisers don’t just grab three random houses off Zillow and call it a day. There’s actually a method (and a little madness) behind every comp that makes it onto your appraisal report.
As a state-certified residential appraiser here in Montgomery County, I spend way too many late nights cross-referencing MLS, county records, and TrueTracts maps to make sure every sale I use actually reflects the market for your property. Here’s a peek behind the curtain.
🔍 Step 1: Location, Location… Market Area
Forget the myth that every comp must be within a one-mile radius. That might work in a cookie-cutter subdivision, but around Lake Conroe, you’ve got waterfront, acreage, cul-de-sacs, and houses with shops big enough to store a small aircraft.
What really matters is the market area — homes competing for the same buyer. Sometimes that’s within a mile, sometimes it’s across town in a subdivision with similar quality, age, and amenities.
Many lenders even encourage including both inside and outside sales — as long as they’re in a competing market area. It shows we’re not cherry-picking a single pocket of sales but looking at the broader market behavior.
📏 Step 2: Size and GLA (Gross Living Area)
Agents love the “price per square foot” metric. Appraisers? Not so much.
We look at how differences in living area affect buyer decisions. A 2,000-sf home and a 2,200-sf home aren’t miles apart in value — but a 1,500-sf cottage versus a 3,000-sf lakefront retreat? Whole different ballgame.
That’s why we develop GLA adjustments based on market data, not gut feelings.
When possible, we also bracket the subject — meaning we choose some comps that are slightly smaller, some slightly larger — to show the subject’s value falls logically within that range. It’s not just good practice; it’s how we demonstrate market support for the final opinion of value.
🧱 Step 3: Quality and Condition
Here’s where the “my house is nicer” argument starts.
We assess quality (materials, craftsmanship, upgrades) separately from condition (maintenance, wear). A home with builder-grade finishes and one with custom woodwork may have the same floor plan, but their market reactions aren’t identical.
We also try to bracket quality and condition — using one sale that’s a bit superior and one that’s a bit inferior — to show how those differences influence the value range.
And yes, some lenders specifically request a mix of new construction and resale comps or different builders to test whether buyers are truly paying premiums for certain products. Translation: we’re not being difficult — we’re just following guidelines.
🗓️ Step 4: Timing is Everything
Markets shift fast. That’s why we prefer recent sales — ideally within the past six months. But if supply is low, we might expand to a year or more, adjusting for time when needed.
For example, if a comp sold before the recent interest-rate rollercoaster, we’ll use tools like Spark or TrueTracts to verify if a market condition adjustment is warranted.
🧮 Step 5: Adjust, Analyze, and Pray
Kidding… mostly.
Once comps are selected, we quantify the differences — lot size, pools, garages, shops, condition, etc. — and then test those adjustments using sensitivity analysis to make sure they line up with what the market supports.
No two appraisers will ever pick exactly the same comps, but the goal is the same: find the ones that bracket the subject’s features and tell the most accurate story of value.
💡 The Takeaway
The next time you see an appraisal, know that those three to six little boxes full of sales data represent hours of research and professional judgment.
We don’t “cherry pick” comps to hit a number — we build the report around what the market says, not what anyone wants it to say.
If you ever wonder why a certain sale didn’t make the cut, just ask. Most of us are happy to explain the logic behind the madness — as long as you don’t open with, “But Zillow says…”
By Brandon Perkins, State-Certified Residential Real Estate Appraiser at Lake Conroe Appraisals LLC.
For more local appraisal insights, visit https://www.lakeconroeappraisals.com
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