Direct Comparison

Methodology

The direct comparison approach derives value by analysing recent sales of comparable properties and adjusting them for differences against the subject. It is the most widely used method in Australian residential valuation and is mandated as a primary check in most lender mortgage instructions.

The Insitive module pulls candidate comparables from the national sales database (or your in-house API), pre-ranks them by similarity, and applies a transparent matrix of adjustments. Each comparable is weighted by the magnitude of adjustment it required — the least-adjusted sales carry the most weight — and the dispersion of the adjusted set is reported so the reliability of the evidence is explicit. The valuer remains in full control of which comps to include and how each adjustment is justified.

When to use it

• Residential houses, units and townhouses with active comparable evidence.
• Small commercial / retail strata where rental evidence is thin.
• As a secondary check on income-producing assets.

Standards & references

• IVS 105 — Valuation Approaches and Methods (Market Approach), IVS 2025.
• IVS 104 — Bases of Value (Market Value).
• API Professional Practice 2021 — Australian Property Institute (adopts IVS).
• APRA APG 223 — Residential Mortgage Lending (acceptable security-valuation evidence).

Plugin interface

Every method is a self-contained module that plugs into the Valuation App. It exposes a typed input/output schema so it can be invoked from a report writer, a workflow, or your own backend.