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http://en.wikipedia.org/wiki/Comparables
Five factors are usually considered when determining comparables:
Conditions of Sale — Did the comparable recently transact under conditions (e.g. — arms length, distress sale, estate settlement) which are consistent with the standard of value under which the appraisal is being performed?
Financing Conditions — Was the comparable transaction influenced by non-market or other favorable (or even unfavorable) financing terms? For example, if the comparable sold with a below-market interest rate provided by the seller, and if the standard of value (e.g. — market value) assumes no such abnormal financing, then the appraiser may need to adjust the comparable price by an amount equal to the estimated impact of the favorable financing.
Market Conditions — This is often referred to as the time adjustment and accounts for changing prices over time.
Locational Comparability — Are the comparable and the subject property influenced by the same locational characteristics? For example, even two houses in the same neighborhood may have different views which cause one to be more valuable than the other.
Physical Comparability — This includes such factors as size, condition, quality, and age.

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