ABSTRACT
Comparison can be defined as ‘the act of comparing’ and to compare as ‘to examine in order to observe resemblances or differences’. These definitions go a long way to explaining what the comparative method does. It works on the simple notion that if one property sells in the open market for £250 000 on today’s date, then so should another, if it is exactly the same in every respect. But property is heterogeneous; no two are truly the same. Even if two neighbouring industrial units are built to the same floor area and specification, they will occupy different sites. In consequence, one may be further from the main road than the other and stand in its shadow in the sense that it lacks the visual prominence of its neighbour. A simple market-based comparison alone is insufficient. As the above definitions suggest, the valuer has to examine resemblances and differences and make appropriate adjustments to reflect these differences. In valuation, these differences can be described as the factors affecting value or the value determinants.
