Comparables (Comps)

In depth

Comparables, or comps, are the foundation of property valuation. Appraisers and CMA preparers select 3 to 6 sold comps within the past 6 to 12 months, ideally within a half-mile, similar in age, size, and style. Adjustments account for differences in bedrooms, baths, garage, lot size, and condition. Misconception: comps are not interchangeable with active listings; only sold comps reflect actual market clearing prices. Practically, FSBO sellers should run their own comp analysis using public records, MLS sources, and Zillow. Quality comp selection matters more than quantity. Distant or stale comps produce misleading pricing. Adjustments should be data-driven, not arbitrary. Lenders' appraisals rely on comps, so an FSBO seller priced too far above comparable sales risks the appraisal coming in low.