Comparable sales
Recent sales of similar homes nearby, used to estimate value. Appraisers and agents both rely on them. The best comps are same neighborhood, same style, similar size, sold within the last few months.
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Where this comes up in a sale, and what follows
Part 1 of 4
Why a seller cares
A price comes from what sold nearby recently, adjusted for the differences, not from a feeling or an estimate site. The comps are the evidence, and the appraiser will use the same ones.
Part 2 of 4
A simple example
Three homes within a mile sold in the last four months: $295,000, $305,000 and $312,000. Yours has one more bathroom than the first and an older roof than the third. The adjustments land you near $305,000.
| The comp | The adjustment for your home |
|---|---|
| $295,000, one bathroom fewer than yours | Add for the bathroom: about $300,000 |
| $305,000, much like yours | No adjustment: $305,000 |
| $312,000, a new roof | Subtract for your older roof: about $306,000 |
Three comps, three adjustments, one range. The price lives inside it.
Part 3 of 4
What people get wrong
That the comp is the neighbor's asking price. A comp is a closed sale; what somebody is asking is not evidence of anything yet.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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