When you ask what your home is worth, the answer usually starts with comparable sales, often called comps. Appraisers, lenders and agents all rely on them, so understanding how comps work helps you price with confidence.
What Is a Comp?
A comp is a recently sold home that is similar to yours in location, size, age, condition and features. Because it reflects what a real buyer actually paid, it is one of the best indicators of what your home could sell for today.
What Makes a Good Comp?
- Close by: ideally in the same neighborhood or a very similar one
- Recent: usually sold within the last three to six months, or up to twelve when sales are limited
- Similar size: comparable square footage, bedrooms and bathrooms
- Similar style and age: a ranch compared with a ranch, newer construction with newer construction
- Similar condition: updated homes compared with updated homes
Adjusting for Differences
No two homes are identical, so comps are adjusted. If a comp has a garage and your home does not, its price is adjusted down. If your home has a renovated kitchen and the comp does not, your value is adjusted up. These adjustments are where local knowledge matters most.
Price Per Square Foot Is a Starting Point
Dividing a sale price by square footage gives a quick benchmark, but it does not capture lot size, updates, views or layout. Use it as a guide rather than a final answer.
Active and Pending Listings Matter Too
Sold homes show what buyers paid. Active listings show your competition, and pending sales hint at where prices are heading. A strong pricing strategy considers all three.
Why Online Estimates Can Miss
Automated estimates cannot walk through your home. They may miss recent updates, condition issues or neighborhood details that a buyer and appraiser will notice.
See Your Comps
Generate a free report with our Home Comps Analysis tool, then request a full CMA for a value that accounts for your home's unique features.
Join The Discussion