Comparable sales
Recent sales of similar properties nearby, used to judge what a property is worth.
- Also called comps or comparables
- Best when recent, close by and genuinely similar
- The basis of valuation and negotiation
How they are used
Valuers, agents and buyers compare a property with recent sales of similar homes: same area, similar land size, bedrooms, condition and type. Adjustments are made for the differences.
Common mistakes
Using asking prices instead of sold prices, sales that are too old, or homes that are not really similar.
The price where you would walk away should come from comparable sales, not from how much you like the property.
Common questions
How recent should comparable sales be?
Ideally within the last six months, longer in quiet markets.
Do lenders use comparable sales?
Yes. Bank valuations rely on them, which can affect how much you can borrow.
Related terms
Sources
General information only. It does not consider your objectives, financial situation or needs, and is not financial, credit, tax or legal advice. Rules change, so check current law and get advice from a licensed professional before acting.