What are "comparables" in real estate appraisal?

In real estate appraisal, comparables, often referred to as "comps," are properties that have similar characteristics to the subject property being appraised and are used as benchmarks to determine its value. Compiling a list of comparables allows appraisers to analyze and compare various aspects such as location, size, condition, and amenities. The sales prices of these similar properties provide essential data that supports the appraised value of the property in question.

Using comparables is a fundamental technique in the sales comparison approach, which is one of the primary methods for valuing residential properties. This approach relies heavily on recent sales data to ensure that the valuation reflects current market conditions and trends.

The other options do not accurately define comparables. While recently renovated properties may factor into a particular valuation context, they are not necessarily comparable unless they are otherwise similar. Properties listed for sale could indicate market trends but do not reflect true market value until they have sold. Properties with historical significance might possess unique value factors that are not directly comparable to other typical properties in the area. Comparables must share relevant attributes that impact their market value with the subject property to be effective in the appraisal process.