What is a comparable sale?

A comparable sale is a property, similar to the subject property in most respects (location, style, age, condition, etc.) that has recently sold in an arms length transaction. An arms length transaction is one in which both seller and purchaser act completely independent of each other and have no connection or relationship. The selection of comparable sales, in most cases, is the single most important factor in estimating value. It is the appraiser’s responsibility to research the local market and determine which comparable sales most accurately reflect the characteristics and amenities of the subject property.

Image credit flickr - James Mitchell