What Is Comparable Sales (Comps)?

Comparable sales — commonly called “comps” — are recently sold properties similar to the home being valued in size, condition, location, and features. Appraisers and real estate agents rely on comps to establish fair market value.

A typical appraisal uses 3–6 comps that sold within the past 6 months and are located within 1 mile of the subject property. For example, if three similar 3-bedroom homes in your neighborhood sold for $365,000, $372,000, and $378,000, the appraiser would adjust for differences — like an extra bathroom or newer roof — and arrive at a supported value near that range. Strong comps protect you from overpaying and reassure your lender that the collateral supports the loan.

Key Facts

• Number used: Appraisers typically analyze 3–6 comparable sales
• Recency: Sales should be within the past 6 months; 3 months preferred
• Proximity: Ideally within 1 mile in urban areas, up to 5 miles in rural areas
• Adjustments: Appraisers add or subtract value for differences in square footage, lot size, condition, and features
• MLS data: Real estate agents pull comps from the Multiple Listing Service for pricing recommendations

Frequently Asked Questions

What makes a good comp?

The best comps match the subject property in location, size, age, condition, and style. A 1,800 sq. ft. ranch built in 2005 should be compared to similar ranches — not a 3,000 sq. ft. two-story or a 1960s fixer-upper. The closer the match, the fewer adjustments needed and the more reliable the value estimate.

Can I provide comps to my appraiser?

You cannot directly influence the appraisal, but your real estate agent can provide a list of favorable recent sales for the appraiser to consider. The appraiser makes the final decision on which comps to use and how to adjust them.

Why do comps matter if I already agreed on a price?

Your lender will only lend based on the appraised value, not the contract price. If comps do not support the agreed price, the appraisal may come in low, requiring you to renegotiate, pay the difference in cash, or cancel the deal.