Recent similar-property sales used by appraisers to support an opinion of market value.
Comparable sales, often called comps, are recently sold properties used as evidence when estimating the value of another property.
Comparable sales are one of the most common building blocks behind appraised value and market value. Borrowers may never see the full valuation logic, but the result often depends heavily on the quality of the comps.
Appraisers generally look for sold properties with meaningful similarities in location, type, size, condition, and features. They then analyze how those sales compare with the subject property and adjust for relevant differences where needed.
The goal is not to find an identical property, which may be impossible, but to build a reasonable evidence base for the value conclusion.
| Stronger comp signal | Why it helps |
|---|---|
| Recent sale date | It reflects a market environment closer to the valuation date. |
| Similar neighbourhood or micro-location | Local pricing differences can be material even within the same city. |
| Similar property type and size | It reduces the number of big adjustments the appraiser must make. |
| Similar condition and feature set | The value comparison becomes easier to defend. |
| Multiple comps pointing the same way | The conclusion is less dependent on a single outlier. |
An appraiser valuing a suburban detached home may use several recent sales from the same area with similar lot size, age, and living space. If one comparable has a renovated basement and the subject does not, that difference may be considered in the analysis.
Comparable sales are not the same as active listings. Listings can be relevant context, but sold properties usually provide stronger evidence of what buyers actually paid.
Borrowers also sometimes think one exceptional sale proves the home’s value. Appraisal work usually relies on a broader evidence set rather than a single outlier.
The usefulness of comps depends on market depth, property uniqueness, and how recent the evidence is. In thin or rapidly changing markets, comparable-sale analysis can be more judgment-heavy.