Final answer:
The best comparables for a residential dwelling are similar homes that recently sold in the same area, considering size, condition, and location. Renting provides flexibility and less maintenance, while buying enables equity build-up and stability but involves higher costs and market risks.
Step-by-step explanation:
The best comparables for a residential dwelling are other homes that are similar in terms of location, size, condition, and amenities. When evaluating comparables, it’s important to consider houses that have recently sold in the same neighborhood, with similar square footage, number of bedrooms and bathrooms, lot size, and home style. Moreover, the proximity to services such as schools and shops, as well as potential negatives like being next to a landfill or factory, significantly impact a home's desirability and value. Housing markets tend to be segmented, where neighborhoods often house people of similar social standing and income, as housing is a critical investment influencing standard of living and expression of individual desires balanced against market demands.
Renting versus buying a home holds various advantages and disadvantages. Renting offers flexibility, minimal maintenance responsibilities, and no property tax obligations. However, it includes no equity build-up and potential for rent increases. Buying a home provides equity growth, potential tax benefits, and a sense of stability, but it requires a significant upfront investment, ongoing maintenance costs, and exposure to market risks.