What is the formula for paired sales analysis overall dollar amount calculation?

The formula for paired sales analysis focuses on determining the difference between the current sale price of a property and the prior sale price of that same property. This approach helps assess changes in market conditions and property values over time. By using the subtraction method, you can identify how much the property value has appreciated or depreciated based on the two sales.

This analysis is crucial for valuing properties, allowing assessors and appraisers to understand trends, influences on property values, and fluctuations in the real estate market. Using the current sale minus the prior sale gives a clear numerical representation of this change, which can be further analyzed for broader market insights.

In contrast, adding, multiplying, or dividing the sales prices would not yield relevant information regarding the comparative value change between the two timeframes. Such operations would not reflect the appreciation or depreciation adequately and would misrepresent the purpose of paired sales analysis.