Comparables
Definition and meaning of Comparables in real estate.
Comparables, commonly referred to as comps, are recently sold or currently active properties with similar characteristics to a property being valued.
In more detail
To select accurate comparables, professionals look for properties in the same neighborhood that have sold within the last few months. These properties should match the target home in size, age, condition, and key features like the number of bedrooms and bathrooms. When a comparable is not an exact match, adjustments are made to its sale price to account for differences, such as adding value if a comp has an extra bathroom.
Appraisers typically require a minimum of three settled comparables to support their valuation for a mortgage lender. Buyers and sellers rely on this data to negotiate realistic offers and listing prices.
Key facts
| Category | Buying & Selling |
|---|---|
| Also known as | Comps |
| Used by | Appraisers, real estate agents, buyers, and sellers |
| Key criteria | Recent sale date, physical proximity, similar size, and matching features |
An appraiser evaluates a three-bedroom house by comparing it to three similar three-bedroom homes in the same subdivision that sold in the past few months.
Frequently asked questions
How old can a comparable property sale be?
Lenders and appraisers typically prefer comparables that have sold within the past three to six months, though they may go back further if sales are slow.
Can active listings be used as comparables?
Active listings show competition and current seller expectations, but appraisers rely primarily on closed sales to determine actual market value.