What Are Comparable Sales?
By JC Pacific Corp Published 2026-09-01 Last professionally reviewed: September 2026
Comparable sales, often called comps, are recently sold properties used to help evaluate the value of another property. The strongest comparable is not necessarily the closest home or most recent sale.
What Makes a Sale Comparable?
Relevant characteristics may include:
- Location
- Property type
- Living area
- Lot size
- Age
- Condition
- Quality
- Bedrooms and bathrooms
- View
- Parking
- HOA structure
- Sale date
- Transaction circumstances
Why Use Closed Sales?
Closed sales show prices buyers and sellers actually agreed upon and completed. Active listings show current competition but not completed market value.
What If There Are No Close Matches?
The appraiser or agent may use less similar properties and analyze the differences. Unique, luxury, rural or newly built properties can require broader research.
Fannie Mae's Selling Guide addresses comparable selection at B4-1.3-08, Comparable Sales : selection should be based on similarity and market relevance, not merely rigid distance or age rules.
Frequently Asked Questions
Is the house next door always the best comp?
No.
Can a pending sale be used?
Pending information may help show market direction, but completed sales generally provide stronger confirmed price evidence.
Does a foreclosure make a good comparable?
Possibly, if distressed sales influence the relevant market and the property is otherwise comparable.
Good comparable analysis asks which properties a typical buyer would reasonably view as alternatives.
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JC Pacific Corp is an Irvine-based Southern California brokerage helping buyers navigate offers, escrow, and financing. Tell us what you are looking for and we will point you to current options across the region.
A note on legal advice: These guides provide general, educational information about California real estate practice. They are not legal advice and do not create an attorney-client relationship. Mortgage information is general education, not individualized lending, tax or legal guidance. For advice about your specific offer, contract, closing or financing, consult a qualified California real estate attorney and a qualified mortgage professional.