Definition
Recently sold homes similar to the subject property in location, size, condition, and features. Comparables establish market value for appraisal purposes and support negotiation positions.
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Appraisers use comparables (comps) to estimate property value through the sales comparison approach. Comps should be within the same market area, sold recently (typically within 6 months), and similar in key characteristics. Appraisers note adjustments for differences—a comp with a newer roof warrants upward adjustment if the subject has an older roof. Multiple comparables (3-5) provide more reliable valuations.
Pro Tip
Review comparable sales data to understand local market value.
Example
An appraisal of a home used four comparable sales: three similar homes sold 2-4 months prior for $425,000-$450,000, and one sold 6 months prior for $415,000. This suggested the subject property value of $435,000 was reasonable.