ONE METHOD OF ILLUSTRATING A CONTINUING TREND
OF INCREASING OR DECREASING PRICES AND/OR VALUES

This Paired Sales Analysis method is best used for subdivisions with similar type homes.
That is, they were mostly built in the same time period, don’t have a wide range of quality or
features. For instance, this method is difficult to use in Nottingham Country, Kelliwood, Pecan
Grove, and Green Trails. For these subdivisions, it would be necessary to add additional
search criteria.

1. MLS Search Criteria

A. Subdivision name
B. Closed sales only, with no closing date
C. No private pools (unless the subject has a pool)
D. Age range - if there is a wide range of ages (say more than 10 years)
E. Size range, use a range of about 10% less and more than subject property
F. One story or two story (optional)
G. Two or three car garage (optional)
H. Number of bedrooms (optional) – unless a two-bedroom home
I. Any other criteria you may want.

2. Print Criteria

A. Select "print"
B. Select "all"
C. Select "a custom print you set up and labeled Comps SFR"
D. Click on the "street name" tab to sort by street
1. Once sorted the "address number" will be in numerical order
2. Now you can look for the same address easily as they will be together regardless of the date
of sale.

3. Analysis
1.Select pairs of sales (of the same house)
2. Compare the two sale prices - subtract and note the difference
3. Divide the oldest (in time) sales price into the difference of the two sale prices. The answer
is the percentage of change.
4. Note the number of months between the two sales.
5. Divide the percentage of change by the number of months between the two sale dates.
6. The answer is the percentage change per month, which indicates how much prices are
changing monthly.
A. The more times you do this analysis the more accurate your answer will be, as the percent
change will vary from house to house.
1. Select the percentage change that is based on a house that is most like your listing (subject
property).
2. If this analysis is for the subdivision in general, then consider the range of percentages as
representative of the subdivision.

A trend of rising prices could be misleading, as the price increases could be due to more sales
of new homes, or larger homes, or homes with pools (or other special features).

4. Example

The same house sold for $120,00018 months after the first sale of $100,000.

$120,000 minus $100,000 equals $20,000 price increase in 18 months.

$20,000 (difference) divided by $100,000 (first sale) equals 0.20, or 20% - the amount of
increase in 18 months.  Divide 20% by 18 months and the answer is 1.11% increase in price
per month.  

Therefore, a sale 8 months ago multiplied by 1.11% per month equals 8.89% (over 8 months).
If this sale was for $95,000 (8 months ago), then $95,000 times 8.89% equals $8,445.50 of
appreciation over those 8 months. $95,000 + $8,445 = $103,445 today.