Definition
A comparable sale is a recently sold property similar to yours, used to estimate your value. The more comparable properties you have, the better your estimate. The trick is finding true comparables and making appropriate adjustments.
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Find my pathAbout this term
Comparable sales, often called 'comps,' are properties that have recently sold and share significant similarities with the subject property in terms of location, size, condition, and features. Appraisers and agents analyze comparable sales to understand the market and make appropriate price adjustments. The reliability of value conclusions depends on finding truly comparable properties and making accurate adjustments for differences.
Pro Tip
When reviewing comparables, focus on recent sales (past 90 days) from your immediate neighborhood. Older sales or distant properties are less comparable.
Example
For a 3-bed, 2-bath home, the appraiser identifies three comparable properties sold in the past 90 days: one at $425,000 with a one-car garage, one at $418,000 needing updates, and one at $432,000 in excellent condition. These sales serve as the basis for value estimation.