valuation

comparable

A comparable, or comp, is a recently sold property similar to the subject property in location, size, age, condition, and features, used to estimate value in the sales comparison approach or a comparative market analysis. Appraisers adjust each comparable's sale price for differences from the subject. Good comps are recent, nearby, arm's-length sales. Active and pending listings may give context but are not closed sales.

Exam tip: Adjust the comparable, never the subject. If the comp is better, subtract; if the comp is worse, add.
Example: A comp sold for $300,000 and has a garage worth $15,000 that the subject lacks, so its adjusted price is $285,000.

1. The subject property has a garage; a comparable that sold for $300,000 does not. The garage is worth $15,000. The adjusted value of the comparable is:

Answer & explanation

Answer: A. Adjust the comparable, never the subject. The subject is superior, so add $15,000 to the comp: $315,000.

Related terms & state variants

adjustment comparative market analysis reconciliation sales comparison approach

Sources

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Last verified: 2026-10-23