How to Read a Property Market Analysis (and Trust the Number)

When an app or an agent tells you a property is worth a certain amount, that number should never be a mystery. A credible market analysis is built from evidence you can inspect. Here is how it works.

It starts with comparables

A comparable — or "comp" — is a recently sold property similar to the one you are evaluating in location, size, age and condition. A trustworthy analysis needs at least three genuine comps. Fewer than that and any estimate is a guess.

Price per unit area is the great equaliser

Because no two properties are identical, analysts convert every sale into a price per square foot (or per marla, per square metre). This lets you compare a 5-marla plot against a 10-marla plot fairly.

Adjustments explain the gaps

A comp that sold six months ago in a rising market, or one with a better view, needs adjusting up or down. Good analysis shows these adjustments openly.

Red flags that the number is wrong

• Comparables are far away or in a different type of neighbourhood.
• The sales used are more than a year old in a fast-moving market.
• A single outlier is dragging the average up or down.

A valuation is only as honest as the evidence behind it. Always ask to see the comps.

Use it to negotiate

Armed with a defensible fair-value range, you can counter an inflated asking price with data instead of emotion — and walk away calmly when the numbers do not work.