Buyer & seller guide
Comparables ("comps") are recently sold homes that are as close as possible to the one you're pricing. They're how buyers, sellers, agents and appraisers all answer the same question: what is this home really worth today?
The checklist
No two homes are the same, so a good comp is the closest match on the things that move price the most. Roughly in order of importance:
Same neighborhood first. Next, a nearby neighborhood that buyers see as equal: similar homes, similar streets, the same school zones. Crossing a busy road or into an area that usually sells for less changes the numbers, so we say so when we use those.
Sold in the last 6 months is best; up to 12 months is fine when sales are few. Prices move with the market and with interest rates, so an older sale tells you less.
Heated square feet within about 10 to 15 percent of the home you're pricing. A much bigger or smaller home sells at a different price per square foot, so it isn't a fair match.
A 1970s ranch compares best to other 1970s ranches. Beds and baths should be close too: a third bathroom or a fourth bedroom is worth real money.
Often the biggest difference between homes on the same street. A renovated home (new kitchen, baths, roof, HVAC) sells for more than one in original condition. With flips, look at the quality of the work, not just the finishes.
Garage vs. carport, a basement, lot size and usable yard, a pool, sewer vs. septic. Each one shifts value up or down.
An estate sale, a foreclosure, a sale between family members or a cash sale to an investor can close well below market. Those don't make good comps, even when the house itself matches.
Sold, pending, for sale
The only true measure of value: what a buyer actually paid. Appraisers rely on sold homes.
A buyer agreed to a price, but we won't know it until it closes. Useful as a sign of where the market is going.
Asking prices, not values. They show you the competition: what else you could buy for the same money.
A home that sat for months or dropped its price was likely priced too high to start. The final sold price is what counts.
A handy number, used carefully
Divide the price by the heated square feet and you can compare homes of slightly different sizes. It works best when the homes are already similar. Smaller homes usually sell for more per square foot, and a beautifully updated home will always beat one that needs work. Treat it as a starting point, not the answer.
From comps to a price
We start with the three to six closest sold homes, then adjust each one for its differences from the home you're looking at: up for what the comp lacks, down for what it has extra. An appraiser does the same thing for your lender (how the appraisal works). Where those adjusted prices land is the home's likely value, and that's what we use to decide whether an asking price is fair and what to offer.
Have a question about a home's comps? Ask us. We'll walk through them with you, line by line. Ready to write an offer →