Comparables are homes of similar size, condition, age, and style that recently sold in a certain neighborhood or area. Evaluating comparable homes and their prices can help determine a fair market value for a home.
Comparables are examined by buyers, sellers, and real estate agents in a comparative market analysis (CMA) to establish a price range for a home based on current market activity. Comparables are also used by appraisers to determine the fair market value of a home during an appraisal.
A quality comparable is most similar to the home in question in terms of:
- Homes sold within 1 mile of the subject property
- Square Footage (within 20% above and below the subject property)
- Style of Home (rambler/2-story/condo)
- Homes sold within the last 180 days
- Number of bedrooms and baths
- Age of home
- Condition of home
- Lot size