Overview
Comparables are the backbone of any real estate appraisal. They are the sales that most closely match your property in terms of location, size, age, style and condition. The goal is simple, find sales that reflect what buyers have recently paid for a similar home in the same market.
This section explains how appraisers identify, filter and select comparables so the final value is accurate and fully supportable.
A valuation is only as strong as the comparables behind it.
Lenders, underwriters and legal professionals rely on this part of the report more than anything else.
Solid comparables reduce risk, ensure consistency and protect the integrity of the appraisal.
Weak or unsupported comparables can delay financing, raise red flags or cause a value to be questioned.
Understanding how comparables are chosen gives you clarity about the process and sets the right expectations before the appraisal takes place.
Core Comparable Selection Criteria
Appraisers follow a consistent hierarchy when searching for the best matches. The goal is not to find identical homes, but to find the ones that require the fewest and most logical adjustments.
Not every sale qualifies, even if it is close by.
Invalid comparables include:
• Distress sales
• Power of sale transactions
• Off market deals without verified exposure
• Sales with unusual motivations
• Properties with incomplete or unverifiable upgrades
• Properties with legal issues or non typical circumstances
These sales do not reflect normal market behaviour and can distort the outcome.
How Appraisers Evaluate Adjustment Readiness
A strong comparable is not identical. It is simply close enough that its differences can be corrected logically.
Appraisers assess:
• Whether the difference can be quantified
• Whether the market recognizes the difference
• Whether the adjustment fits local patterns
• Whether the change keeps the comparable credible
This is how the appraiser builds a supportable grid before finalizing the value.
Why can’t older sales be used?
Older sales may not reflect current market conditions. If they are used, the appraiser needs strong evidence to adjust them forward or backward in time.
Can listing prices be used as comparables?
No. Listing prices show seller expectations, not market proof. Only closed sales can be used for primary valuation.
Why do two appraisers pick different comparables?
Different appraisers may prioritize different criteria based on what they believe provides the strongest support. As long as the reasoning is sound, more than one set of comparables can be correct.
If you want expert guidance before ordering an appraisal, or you have questions about how comparables will influence your property value, our team is here to help.
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