Example 1 - Waterfront:
Buyers usually see waterfront properties as very different from non-waterfront properties. (And, usually pay much more for being on the water).
- Probably, a waterfront property should be compared to other waterfront properties. They are seen as significantly different from properties not on the water.
Example 2 - Number of bedrooms:
You have a 3-bedroom house. Some houses in your neighbourhood have 3 bedrooms and some have 4 bedrooms.
- While some buyers may prefer more rooms, others may prefer fewer but larger rooms.
- It may be hard to show that buyers see 3 versus 4 bedroom homes as very different.
Probably, it is more appropriate to compare all single family houses in your municipality.
As a general rule:
We, at the Board, prefer a larger group of comparables unless there is a clear reason to look at a smaller group.