# Real Estate Comps: The Complete Guide to Finding Comparable Properties By Opendoor Editorial Team | 2022-10-18 > Comps, or comparable sales, can help you determine how much your home is worth in the current market. Here’s what you need to know about this commonly-used real estate term. ## Key Takeaways ## Key takeaways - In real estate, comps means “comparable sales.” - Comps are one of the tools used to help determine the current fair market value of a property. - They're commonly used by home sellers, home buyers, real estate agents, and appraisers. # Real Estate Comps: The Complete Guide to Finding Comparable Properties Real estate comps are recently sold homes similar to yours that reveal what buyers are actually paying in your market. They're the foundation of how homes get priced — whether you're selling, buying, or simply curious about your property's value. This guide covers how to find comps, what makes a property a strong comparable, and how to use that data to arrive at an accurate price for your home. [Get your offer](#) ## What are comps in real estate Real estate comps — short for "comparables" — are recently sold homes similar to yours in location, size, condition, and features. When you want to know what your house is worth, comps show you what buyers have actually paid for similar properties nearby. Rather than guessing at a price, you can look at what the three-bedroom down the street sold for last month and use that as a reference point. The idea is simple: if a home like yours sold for $375,000 two months ago, that sale tells you something meaningful about your home's value. Comps act as real-world evidence, grounding your expectations in actual market activity rather than wishful thinking. A strong comparable typically shares four key characteristics with your property: - **Location:** Same neighborhood or within a close radius - **Size:** Similar square footage and lot size - **Condition:** Comparable age, updates, and overall state - **Features:** Matching bedroom and bathroom count, garage, and amenities ## Why comparable home sales matter when pricing your home Pricing a home correctly from the start can shape the entire sale. Set the price too high, and your listing may sit for weeks while buyers scroll past — [77% of real estate agents](https://www.homelight.com/blog/home-selling-mistakes/) identified overpricing as the number-one mistake homeowners make when selling. Comps take much of the guesswork out of pricing. Instead of relying on intuition or what you hope your home is worth, you can point to actual sales data. If three similar homes in your neighborhood sold between $340,000 and $360,000 in the past three months, that range gives you a realistic starting point. Lenders and appraisers also rely on comparable sales. Before approving a mortgage, a lender typically requires an [appraisal](https://www.opendoor.com/articles/home-appraisal-process), and the appraiser will pull comps to verify the home's value supports the loan amount. So even if you price your home based on gut feeling, the appraisal process will bring comps back into the picture. ## How to find real estate comps for your house Finding comps is more accessible than it used to be. Some methods are free and available to anyone online, while others require working with a professional. Here are five common approaches, starting with the most accessible. ### 1. Search real estate websites for sold listings Websites like Zillow, Redfin, and Realtor.com let you filter for recently sold homes in your area. You can narrow results by price range, square footage, number of bedrooms, and other features to find properties similar to yours. Online listings offer a solid starting point, though they may not include every detail about a transaction. [Seller concessions](https://www.opendoor.com/articles/hidden-fees-when-selling-a-house), the home's condition at the time of sale, or why a price was reduced often won't show up in the listing. ### 2. Use free online home valuation tools Automated valuation models, often called AVMs, pull data from recent sales to estimate your home's value. You enter your address, and the tool generates an estimate within seconds based on comps in your area, though [sophisticated valuation models](https://www.opendoor.com/articles/how-opendoor-calculates-the-value-of-your-home) combine multiple data sources and local expertise for greater accuracy. AVMs are convenient, but they can miss nuances. A recently renovated kitchen or a dated roof won't always show up in the algorithm. Treat online estimates as a starting point rather than a final answer. ### 3. Request a cash offer based on local comps Some companies analyze local property comps to generate cash offers. At Opendoor, for example, we look at recent sales, local market trends, and property-specific details to provide a competitive offer. This approach gives you a data-backed valuation without listing your home or scheduling showings. [Get a cash offer](https://www.opendoor.com/address-entry) to see what your home could be worth based on current market data. ### 4. Ask a real estate agent for MLS comps The Multiple Listing Service, or MLS, is the database real estate agents use to access comprehensive sold data. MLS comps typically include more detail than public websites, including days on market, price reductions, and agent remarks about the property's condition. If you're working with an agent, ask them to prepare a comparative market analysis, often called a CMA. Many agents will provide a CMA for free, even if you're still deciding whether to list. ### 5. Look up public property records in your area County assessor websites and public records offices maintain transaction histories for properties in your area. You can often search by address to find the last recorded sale price. Public records require more effort to navigate, and the data may be less current than MLS records. However, the sale prices come directly from official sources, which can be useful for verification. ## What makes a property a good real estate comparable Not every recently sold home qualifies as a strong comp. The best comparables share specific characteristics with your property, and the closer the match, the more useful the data. ### Proximity to your home Location matters more than almost anything else. Ideally, comps fall within a half-mile to one-mile radius of your home. Neighborhood boundaries, school districts, and access to amenities can all [affect value](https://www.opendoor.com/articles/factors-that-influence-home-value), so a home two miles away might not reflect your market accurately. ### Recent sale within the past six months [Markets shift](https://www.opendoor.com/articles/understanding-fundamentals-of-real-estate-market) over time. A home that sold 18 months ago may have closed under very different conditions than today's market. In fast-moving markets, prioritize sales from the past three months when possible. ### Similar square footage and lot size Homes within a reasonable range of your property's size make the strongest comps. A 1,200-square-foot home and a 2,400-square-foot home in the same neighborhood will likely have very different values, even if other features match. ### Matching number of bedrooms and bathrooms Bedroom and bathroom counts directly impact value. Comparing a three-bedroom, two-bathroom home to a four-bedroom, three-bathroom home requires significant price adjustments, which can reduce accuracy. ### Comparable age and architectural style A newly built home and a 1960s ranch in the same neighborhood may appeal to different buyers and command different prices. Comparing homes built within five to ten years of each other typically produces more reliable results. ### Similar condition and upgrades A fully renovated home with a new kitchen and updated bathrooms isn't directly comparable to a fixer-upper. When evaluating comps, consider the condition at the time of sale and any [major upgrades](https://www.opendoor.com/articles/improvements-that-increase-home-value) that may have influenced the price. ## How to compare house comps and calculate home value Once you've gathered several comps, the next step is analyzing them. This is where you move from collecting data to actually using it. ### Calculating price per square foot Price per square foot is one of the most common metrics for comparing homes. To calculate it, divide the sale price by the home's square footage. For example, if a comp sold for $400,000 and measures 2,000 square feet, the price per square foot is $200. This metric helps normalize comparisons between homes of different sizes, making it easier to spot patterns across your comps. ### Adjusting for property differences No two homes are identical. When your home has features a comp lacks, or vice versa, you can adjust the value accordingly. | **Feature difference** | **Adjustment direction** | | Extra bedroom | Add value | | Smaller lot | Subtract value | | Updated kitchen | Add value | | No garage | Subtract value | Adjustments are estimates, not exact science. But they help account for meaningful differences between properties and give you a more accurate picture. ### Weighing multiple comps to set your price Using three to six comparable properties provides a more reliable range than relying on a single sale. One comp might be an outlier, perhaps a distressed sale or a home that sold to a family member at a discount. Look for patterns across your comps. If most fall within a similar price range, you can feel more confident about where your home fits. If prices vary widely, dig deeper into what made each sale different. ## Who uses real estate comparables and why Comps serve different purposes depending on who's using them. Here's how different people in a real estate transaction rely on comparable sales data. ### Home sellers determining list price Sellers use comps to price competitively and attract buyers. Accurate pricing based on recent sales can lead to faster offers and fewer price reductions down the road — houses that sell [within 4 weeks](https://c21affiliated.com/2025/04/09/selling-your-home-avoid-this-mistake-when-setting-your-asking-price) of listing typically sell for full price. ### Homebuyers making informed offers Buyers analyze comps to avoid overpaying. If a home is listed at $450,000 but similar properties have sold for $420,000, that data provides leverage for negotiation. ### Real estate agents guiding their clients Agents run comps regularly, not just for specific transactions, but to stay current on market trends. They use MLS data to advise both buyers and sellers on pricing and offer strategy. ### Appraisers establishing market value Appraisers use comparable sales data to determine value for lenders. The appraisal protects both the buyer and the lender by verifying the home is worth the loan amount. ## Common mistakes to avoid with real estate comps Even with good data, certain errors can lead to inaccurate pricing. Here are five common pitfalls to watch for. ### 1. Using active listings instead of sold homes Asking prices reflect what sellers hope to get, not what buyers actually pay. Only closed sales show true market value. A home listed at $400,000 might eventually sell for $375,000, and that final number is what matters. ### 2. Selecting comps that are too old A sale from two years ago may not reflect current market conditions. Stick to recent transactions, ideally within the past six months, and prioritize even more recent sales in active markets. ### 3. Choosing properties too far from your home Distance introduces variables. A home in a different school district or across a major highway may not be comparable, even if the features match. Stay within your immediate area when possible. ### 4. Ignoring differences in condition or upgrades A comp with a brand-new roof and updated HVAC isn't directly comparable to a home that needs major repairs. Failing to adjust for condition differences can skew your estimate significantly. ### 5. Relying on only one comparable sale A single comp may be an outlier. Using multiple comparables helps identify a reliable price range and reduces the risk of basing your decision on an unusual transaction. ## The simplest way to know what your home is worth Researching comps on your own is valuable, but getting a professional valuation removes much of the guesswork. At Opendoor, we provide free, no-obligation cash offers based on local market data and comparable home sales. Whether you choose to accept, list on the market, or simply want to understand your home's value, a cash offer gives you a clear starting point. [Get a cash offer](https://www.opendoor.com/address-entry) and see what your home could be worth today. [Get your offer](#) ## FAQs about finding real estate comps ### How many comps should I use to price my home? Most real estate professionals recommend using three to six comparable properties. This range provides enough data points to identify patterns while filtering out potential outliers — [two-thirds of home appraisals](https://www.fhfa.gov/blog/statistics/counting-comps-exploring-the-number-of-comparable-properties-in-home-appraisals) include five or more comparable properties even though only three are required. ### What if there are no recent comparable sales in my neighborhood? When recent comps are scarce, you may need to expand your search radius slightly or look at similar neighborhoods with comparable characteristics. An experienced agent can help identify appropriate alternatives. ### Can I use comps from a neighboring city or zip code? Using comps from nearby areas is acceptable when your immediate neighborhood lacks recent sales. However, prioritize properties with similar market conditions, school districts, and amenities. ### How do cash offer companies use comps to determine home value? Cash offer companies like Opendoor analyze recent comparable sales, local market trends, and property-specific details to generate a competitive offer. This data-driven approach provides a valuation based on current market conditions. ### Should I hire an appraiser to find comps for my home? Hiring an appraiser provides an unbiased, professional valuation. This option is especially useful if you want a formal assessment before listing or if you're negotiating a sale and want third-party verification. | **Supported Locations** | | | **Cities / Areas** | **States** | | [Columbia](/sell/columbia_sc), [Columbus](/sell/columbus_oh), [Corpus Christi](/sell/corpus_christi_tx), [Detroit](/sell/detroit_mi), [East Texas](/sell/east_texas), [El Paso](/sell/el_paso), [Florida Panhandle](/sell/florida_panhandle), [Greensboro](/sell/greensboro_nc), [Greenville](/sell/greenville_sc), [Indianapolis](/sell/indianapolis_in), [Kansas City](/sell/kansas_city), [Killeen](/sell/killeen_tx), [Knoxville](/sell/knoxville_tn), [Las Vegas](/sell/las_vegas), [Little Rock](/sell/little_rock_ar), [Louisville](/sell/louisville_in_ky), [Memphis](/sell/memphis_tn), [Miami](/sell/miami_fl), [Milwaukee-Waukesha](/sell/milwaukee_waukesha_wi), [Minneapolis](/sell/minneapolis), [New Orleans](/sell/new_orleans_la), [New York & New Jersey](/sell/new_york_new_jersey), [Northern Colorado](/sell/northern_colorado), [Oklahoma City](/sell/oklahoma_city_ok), [Omaha](/sell/omaha_ne), [Philadelphia](/sell/philadelphia_pa), [Pittsburgh](/sell/pittsburgh_pa), [Portland](/sell/portland), [Prescott](/sell/prescott_az), [Reno](/sell/reno_nv), [Richmond](/sell/richmond_va), [Salt Lake City](/sell/salt_lake_city), [San Antonio](/sell/san_antonio), [Seattle](/sell/seattle_wa), [San Francisco Bay Area](/sell/sf_bay_area), [South Texas](/sell/south_texas), [Southwest Florida](/sell/southwest_fl), [St Louis](/sell/st_louis), [Tucson](/sell/tucson), [Tulsa](/sell/tulsa_ok), [Virginia Beach](/sell/virginia_beach_va), [West Texas](/sell/west_texas), [Western New York](/sell/western_ny) | [Alabama](/sell/alabama_other), [Arkansas](/sell/arkansas_other), [California](/sell/california_other), [Colorado](/sell/colorado_other), [Connecticut](/sell/connecticut_other), [Delaware](/sell/delaware_other), [Georgia](/sell/georgia_other), [Idaho](/sell/idaho_other), [Illinois](/sell/illinois_other), [Indiana](/sell/indiana_other), [Iowa](/sell/iowa_other), [Kansas](/sell/kansas_other), [Kentucky](/sell/kentucky_other), [Louisiana](/sell/louisiana_other), [Maine](/sell/maine_other), [Maryland](/sell/maryland_other), [Massachusetts](/sell/massachusetts_other), [Michigan](/sell/michigan_other), [Minnesota](/sell/minnesota_other), [Mississippi](/sell/mississippi_other), [Missouri](/sell/missouri_other), [Montana](/sell/montana_other), [Nebraska](/sell/nebraska_other), [Nevada](/sell/nevada_other), [New Hampshire](/sell/new_hampshire_other), [New Mexico](/sell/new_mexico_other), [New York](/sell/new_york_other), [North Carolina](/sell/north_carolina_other), [North Dakota](/sell/north_dakota_other), [Ohio](/sell/ohio_other), [Oklahoma](/sell/oklahoma_other), [Oregon](/sell/oregon_other), [Pennsylvania](/sell/pennsylvania_other), [South Carolina](/sell/south_carolina_other), [South Dakota](/sell/south_dakota_other), [Tennessee](/sell/tennessee_other), [Utah](/sell/utah_other), [Vermont](/sell/vermont_other), [Virginia](/sell/virginia_other), [Washington](/sell/washington_other), [West Virginia](/sell/west_virginia_other), [Wisconsin](/sell/wisconsin_other), [Wyoming](/sell/wyoming_other) | --- *Originally published at [https://www.opendoor.com/articles/briefs/do-real-estate-comps-matter](https://www.opendoor.com/articles/briefs/do-real-estate-comps-matter)*