Comparable sales, or comps, are similar recent property sales used to help support a home's valuation.
Comparable sales, often called comps, are similar recent property sales used to help support a home’s valuation.
Comps matter because value discussions in mortgage lending are rarely based on guesswork. Appraisers and market participants look at nearby, similar sales to judge what the subject property is likely worth.
The term also matters because borrowers often hear that a value came in low or high without understanding what evidence was used. Comps are one of the main building blocks behind that conclusion.
Borrowers usually encounter comps when an appraisal is reviewed or when buyers and agents debate whether a contract price is supported by the local market.
The concept becomes practical during underwriting if the supported value affects leverage, pricing, or closing negotiations.
An appraiser compares the subject property with several recently sold homes of similar size, location, and features. Those comparable sales help support the appraised value.
Comparable sales differ from Appraisal because comps are pieces of valuation evidence, while the appraisal is the full professional report and conclusion.
They also differ from Appraisal Gap. Comps help explain why a value was supported or not supported, while an appraisal gap describes the resulting mismatch between supported value and deal price.