This project is to perform what the real estate agents call a comparative market analysis. Select a subject property (e.g., your family’s single house) for which you obtain an estimate of market value. The idea is to find three houses that have been sold recently that are very similar to the subject house. You can visit a local real estate agent and ask for the ‘‘closing book,’’ the book that records the recent sales in the vicinity. Real estate offices now obtain this information from a centralized computer.

You may also be able to find selling prices of ‘‘comparables’’ on the web by going to the real estate site supported by a major newspaper, for example. Find your three comparables and make the adjustments to their market prices so as to make them as close to the subject property as possible. See Table 9.1 for the details. This project may take you some time and legwork, but it literally can be a very valuable exercise.