Appraisal method for estimating an adjustment by comparing similar sales that differ mainly by one feature.
Paired sales analysis is an appraisal method for estimating an adjustment by comparing similar sales that differ mainly by one feature.
Paired sales analysis matters because appraisal adjustments should be supported by market evidence when possible. If two otherwise similar homes sell for different prices and the main difference is one feature, that price difference can help indicate how the market treated that feature.
It also matters because borrowers often question why an appraiser adjusted for a garage, bathroom, view, condition, or living-area difference. Paired sales analysis is one way an appraiser can support the logic behind an Appraisal Adjustment.
Borrowers may not see the phrase on every report, but the logic can appear inside the appraiser’s explanation, adjustment support, or review response.
The term becomes practical when the mortgage file faces Appraisal Review questions or a Reconsideration of Value request that challenges a particular adjustment.
| Step | What the appraiser is trying to isolate |
|---|---|
| Find similar sales | Reduce unrelated differences |
| Identify one major difference | Focus on the feature being adjusted |
| Compare prices | Estimate how the market reacted |
| Apply judgment | Avoid treating noisy data as a mechanical rule |
Two very similar homes sell in the same subdivision near the same time. One has a finished basement and the other does not. If the price difference appears tied mainly to that feature, the appraiser may use that evidence to support a basement-related adjustment.
Paired sales analysis differs from Appraisal Adjustment because paired sales analysis is one support method, while the adjustment is the value change applied in the comparison grid.
It differs from Comparable Sales (Comps) because comps are the sales used in the valuation analysis, while paired sales analysis compares sales to isolate a feature’s market effect.
It also differs from Adjusted Sale Price because adjusted sale price is the result after adjustments are applied.