Overview
Homeowners often look at recent sales to estimate their property’s value, but choosing the wrong comparables can lead to inaccurate expectations.
Appraisers use strict criteria when selecting comparable sales, and these same principles apply when estimating your own value.
Understanding how to choose the right comparables helps prevent overestimations and disappointments during refinancing, selling or legal matters.
This guide explains how to use comparable sales properly and how appraisers evaluate comparables across the GTA and surrounding areas.
Accurate comparable selection affects:
• Pricing expectations
• Negotiation strategy
• Refinancing outcomes
• Market readiness
• Appraisal results
• Lender review
Choosing the wrong sales can create unrealistic value expectations.
To be a valid comparable, a property must match the subject across five core criteria:
- Location
The sale must come from the same neighbourhood or micro market.
Crossing major streets or school boundaries often changes value significantly.
- Property Type
Appraisers avoid mixing detached with semis, semis with towns or towns with condos.
Property style must match.
- Size and Layout
Comparable homes must have similar:
• Square footage
• Bedroom count
• Bathroom count
• Basement finish
• Functional layout
Major differences make the sale unsuitable.
- Condition and Quality
Condition tiers matter.
Homes that are original, partially updated or fully renovated behave very differently in the market.
- Market Timing
Sales must come from the same market period.
Using outdated sales creates misleading conclusions.
How to Select Comparables the Right Way
- Do not focus only on high sales
A sale that is ten percent above the neighbourhood range is often an outlier.
- Do not use list prices
List prices reflect strategy, not value.
- Do not mix markets
A sale from three months ago may not reflect today’s trend.
- Do not rely on sales from different neighbourhoods
Even adjacent pockets can differ by tens or hundreds of thousands.
- Do not use homes with very different renovations
A luxury kitchen does not compare to an original one.
How Appraisers Use Comparable Sales
Appraisers evaluate:
• The strength of the comparable
• The adjustments required
• The stability of the market
• How each sale aligns with the subject
• Whether the sale reflects typical market behaviour
Strong comparables require minimal adjustments and reflect the same buyer pool.
“My house is worth what my neighbour sold for.”
Only if the homes are comparable in all major categories.
“The highest sale sets the new standard.”
Appraisers require multiple data points, not one peak sale.
“Zillow or online estimates are accurate.”
Automated estimates cannot interpret condition or micro market differences.
“Upgrades automatically raise value.”
Only if buyers in your neighbourhood pay more for those upgrades.
How many comparables do appraisers use?
Typically three to five strong sales supported by additional market data.
What if there are no perfect comparables?
Appraisers choose the closest matches and adjust using market evidence.
Can I provide my own comparables?
Yes, but appraisers decide which ones are relevant.
How recent should comparables be?
Within 90 to 180 days whenever possible.
If you want help identifying the strongest comparable sales for your neighbourhood, our appraisal team can provide a clear, market supported analysis based on current trends.
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