What are comparables? – David Reecher
Comparables are homes of similar size, condition, age, and style that recently sold in a certain neighborhood. 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:
- Last sale price
- Number of bedrooms and baths
- Age and style of home
- Condition of home
- Lot size and condition
- Views and waterfront access