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Comparable Property
In a sales comparison, a comparable property provides market evidence through a sale of similar real estate.
In a sales comparison, a comparable property is similar real estate whose sale provides evidence for analyzing the subject property's value. Relevant similarities include location, size, style, and condition; a comparable need not be identical.
Property operations example: record the sale date, property characteristics, and reasons a comparison is relevant. A nearby address alone does not explain why two properties serve the same market.
Source: Fannie Mae Selling Guide, B4-1.3-08, Selection of Comparable Sales.
Frequently Asked Questions
Is the nearest property automatically the best comparable?
No. Geographic proximity is one factor. The property's characteristics and market relevance also matter to the comparison.
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