Real Estate Glossary > C > Comparables Definition

Homes of similar size, condition, age, and style for sale and that recently sold in a certain neighborhood. Looking at the prices of comparable homes during the home-buying or selling process helps buyers and sellers get a sense of a fair market price for a home. Use comparable homes in a Comparative Market Analysis (CMA) An evaluation of comparable recently sold homes in a neighborhood to determine a fair price range for a certain home on the market. to determine a fair price range for a certain home on the market. Appraisers An individual licensed to conduct appraisals for mortgage lenders. use comparables to determine the fair market value of a home for an Appraisal The estimation of a home's fair market value by a licensed appraiser based on comparable recent sales of homes in the neighborhood. Loan underwriters compare the appraisal price to the purchase price of the home to ensure that the value is equal to or greater than the purchase price. .