Sales Comparables are homes of similar characteristics (year built, condition, etc.) that recently sold in a nearby location. To determine the fair market value of a home, analyzing comparable homes and their prices is typically considered to be the best method.
Comparables are used by buyers, sellers, and real estate agents in a comparative market analysis (CMA) to establish a price range for a home based on current market activity. Comparables are also used by appraisers to determine the fair market value of a home during an appraisal.
A quality comparable is most similar to the home in question in terms of:
Size - lot and home
Sale price per square foot
Number of bedrooms and baths
Condition and style of home