Comparable sales (often referred to as "comps") are used by appraisers to help determine a property’s appraised value.
Comparable Sales are used by appraisers to help determine a property’s appraised value.
“Comps” are similar properties in the area, normally within 1 mile of the subject property. For this reason, unique or remote houses are difficult for appraisers to determine estimated values for, as there are few-to-no similar or nearby properties to use as metrics for their calculations.
In order for a similar or nearby property to be used as a “comp,” it must have already closed any ongoing transactions by the time of the subject property’s appraisal (i.e., a pending sale cannot be used as a comp in the appraiser’s report).