Ask Nanci
What is a comparable sale (comp) and how is it used?
Short Answer
A comparable sale, or comp, is a recently sold home similar to yours in size, condition, and location, used to estimate what a home is worth. Agents and appraisers compare these sales, adjusted for differences, to set listing prices and to support an appraisal. Comps are the foundation of both pricing a home and understanding an offer.
General information, not legal or financial advice.
What a comp is
A comparable sale is a home that recently sold and is similar to the property being valued, in size, style, condition, and neighborhood.
By looking at what these similar homes actually sold for, you get a realistic sense of value.
How comps are chosen
The best comps are recent sales of homes close by, with similar square footage, bedrooms, and features. Adjustments are made for differences like an extra bathroom or a renovated kitchen.
The closer and more similar the sale, the stronger the comparison.
How they are used
Agents use comps to recommend a listing price and to help buyers understand a fair offer. Appraisers use them to confirm a home's value for the lender.
Comps are the backbone of the numbers on both sides of a sale.
What they cannot capture
Comps are a strong guide, but they cannot capture everything, like a home's condition, its views, or how the market is shifting. They are best used with judgment and current context.
That is why experience matters in reading them correctly.
How Nanci can help
I prepare a careful comparable analysis for any home, whether you are pricing a sale, making an offer, or just wondering what your place is worth.
You get a clear, honest read on value, grounded in real sales.
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