What Are Comparable Sales (Comps)?
Comparable Sales (Comps): Recent sales of similar nearby homes, used to set offer prices and appraised values.
Also called: comps
Comparable sales, or comps, are recently sold homes that are similar to the one you're buying in location, size, age, condition and features.
What makes a good comp
- Sold within the last 3 to 6 months
- Within about a mile, or the same neighborhood
- Similar square footage, bedrooms and bathrooms
- Similar condition and lot size
How appraisers use them
The appraiser picks at least three comps and adjusts their prices for differences. For example, they'll add value if your home has an extra bathroom, or subtract if it lacks a garage.
How you can use them
Look at sold prices, not listing prices, to set your offer price. If you offer well above the comps, expect an appraisal challenge.