Comparables

From Wikipedia, the free encyclopedia

Comparables (or comps) is a real estate term referring to properties with characteristics that are similar to a subject property whose value is being sought. This can be accomplished either by a real estate agent who attempts to establish the value of a potential client's home or property through market analysis or, by a licensed appraiser using more defined methods, when performing a real estate appraisal who will offer an opinion of value for the property. While it is possible that an agent can also be a licensed appraiser, the licensure requirements are not the same.

Many factors go into determining which properties can be considered comparables:

• geographic area
• features of the parcel, including view, terrain, access, and negative external influences
• size of the parcel
• characteristics of previous sales of the property
• type and use of improvements (structures)
• square footage of the improvements
• features of the improvements, including quality and condition

The best comparable properties are those that match the subject in every aspect, however since each piece of real estate is unique, several comparables are required to determine an accurate value of a property.