📊 What Are Comps in Real Estate?

In real estate, “comps” — short for comparables — are recently sold homes that are similar in location, size, condition, and features to the property you’re buying or selling. Comps are used to estimate a home’s fair market value — a crucial step when deciding how to price your property.

How Real Estate Comps Work

Agents, appraisers, and FSBO sellers use comps to determine a realistic listing price. By comparing similar properties that have recently sold—usually within the past 3–6 months—you can identify what buyers in your area are actually paying. Comps help avoid overpricing (which can lead to long DOM) or underpricing (which can reduce your equity).

What Makes a Good Comp?

  • 🏠 Location: Same neighborhood, subdivision, or within 1 mile.
  • 📏 Square footage: Ideally within Âą10–15% of the subject property’s size.
  • 🛏 Bedrooms & bathrooms: Match or differ by only one room.
  • 📅 Recent sale date: Sold within the last 3–6 months.
  • 🏗 Condition & features: Similar updates, lot size, garage, and amenities.

Comps vs. CMA (Comparative Market Analysis)

While comps refer to individual comparable sales, a Comparative Market Analysis (CMA) is a broader report that compiles multiple comps to estimate a property’s value range. Real estate professionals—and Brokerless.com for FSBO sellers—use CMAs to recommend pricing strategies that reflect true market conditions.

Why Comps Matter for FSBO Sellers

Accurate comps help FSBO sellers set the right asking price and attract serious buyers faster. Overpricing leads to longer days on market, while underpricing can cost you equity. Reviewing comps before listing on the MLS through Brokerless ensures your pricing is competitive, realistic, and data-driven.

As explained in our Most Common Real Estate Questions guide, “What is my house worth?” is the single most important question every seller asks—and understanding comps is the key to answering it confidently.