Part of evaluating the value of your home, is comparing it to other homes in the neighborhood. “Comparable Sales” are used to determine your value.

What is a Comparable?

A “comparable” is a house that was recently sold that is similar to the home being appraised based on certain criteria. This criteria typically includes similarities in style, age, quality, condition, appeal, square footage, time of sale, price range and functional use. 

What is a Sale?

While a comparable is always a sale, a sale is not always a comparable. Even though a sale may have occurred recently and is nearby, there may still be enough differences that a typical buyer for the subject property, would not consider this sale as an alternative option when searching for a home to purchase. 

Therefore, even though the home nearby was similar in age, size, design and appeal, it may be further away from town, or in a different school system than the buyer was interested in or there may be other factors making it less comparable to the one being appraised.  

These factors come in to play when determining what “comps” are utilized for the final report and valuation. When there is a difference between the appraised value and the homeowner’s thoughts on the value, looking into these details often provides the complete answer.