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 in the current market.
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, but only if the sales are truly similar enough in location, timing, size, condition, and features to support a fair comparison.
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, seller negotiations, or whether the borrower has to cover an Appraisal Gap. Comps are most useful when Comparable Sale Selection focuses on sales that can reasonably be compared against the Subject Property and adjusted for meaningful differences.
| Grid item | Why it matters |
|---|---|
| Sale price | Shows what the comp actually sold for before interpretation |
| Comparable Sale Selection | Explains why these sales were chosen |
| Bracketing | Shows whether comps surround the subject on key characteristics |
| Gross Living Area | Helps compare size, often separately from basement or site area |
| Condition Adjustment | Helps account for renovations, wear, or needed repairs |
| Location Adjustment | Helps account for market-setting differences |
| Time Adjustment | Helps account for market movement between sale date and valuation date |
| Adjusted Sale Price | Shows the comp’s value indication after adjustments |
An appraiser compares the subject property with several recently sold homes of similar size, location, age, and condition, then adjusts for meaningful differences such as an extra bathroom or renovated kitchen. 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 the Sales Comparison Approach. Comps are the actual sales data points, while the sales comparison approach is the broader valuation method built around selecting and adjusting those points.
They differ from Comparable Sale Selection because comparable sales are the evidence points, while selection is the judgment about which sales should be used.
They differ from an Appraisal Adjustment because the comp is the sale being compared, while the adjustment is the change made to account for differences between that sale and the subject property.
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.