Definition
Recently sold properties similar to your target property in size, condition, age, and features. Comparables help you understand fair market value and negotiate effectively.
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Real estate professionals use comparable properties to analyze the market and determine appropriate pricing for a property. A good comp should be within the same neighborhood, sold within the last 3-6 months, and similar in key features like square footage and number of bedrooms. Comparing properties helps buyers understand what they're getting for their money and negotiate fair prices.
Pro Tip
Review comparable sales data before making an offer. This information gives you leverage to negotiate fairly.
Example
The appraiser found three comparable properties that had sold in the neighborhood within the past 60 days, ranging in price from $425,000 to $445,000.