FOR AGENTS AND APPRAISERS · UPDATED OCTOBER 2026
How to Select Good Comparables for Appraisals and CMAs
Appraisers follow a disciplined method for choosing comps. Agents who use the same method price listings that hold up when the appraisal comes in. Here's how it works.
The Short Answer
A good comparable is a closed, arm's-length sale that is as recent, as close by, and as similar to the subject property as the market allows. Pick three to six of them, adjust each one for its differences, and make sure they bracket the subject on price and key features.
That's the same logic an appraiser uses, which is why it's the best way to build a CMA.
Why Agents Should Think Like Appraisers
A listing priced on weak comps can attract an offer, then fall apart when the buyer's appraisal comes in low. That leads to renegotiation, a frustrated seller, or a lost deal.
When your CMA uses the comps an appraiser would likely choose, your pricing is easier to defend, your sellers trust your number, and fewer deals get derailed at appraisal.
The 6 Marks of a Good Comparable
1. It's a closed sale
Comps should be sold properties, not listings. Active and pending listings show where the market is heading, so use them as support, but the sale price is what proves value.
2. It's recent
The newer the sale, the better it reflects today's market. In a fast-moving market, a sale from even a few months ago may need a time adjustment. Go further back only when recent sales are scarce, and note why.
3. It's in the same market area
Distance alone isn't the test. A sale half a mile away across a highway, school district line, or town border may be a worse comp than one two miles away in the same neighborhood. Look for sales that buyers would see as true alternatives.
4. It's physically similar
Match the big factors first: property type and style, living area, bedrooms and bathrooms, lot size, and age. The fewer adjustments a comp needs, the more reliable it is.
5. It's in similar condition
A fully renovated home and one needing a new roof and kitchen aren't the same product, even with identical square footage. Check listing photos and remarks, and adjust for updates, condition, and features like garages, basements, and pools.
6. It's an arm's-length sale
The buyer and seller should be unrelated and under no pressure. Sales between family members, foreclosures, and short sales often don't reflect typical market value. Use them only when they're common in that market, and treat them with care.
How to Adjust a Comparable
No comp is a perfect match, so you adjust each one to make it look like the subject property. The rule to remember: you always adjust the comp, never the subject.
• If the comp is better than the subject in some way, subtract the value of that difference from the comp's sale price.
• If the comp is worse, add the value of that difference.
| Example | Subject | Comp | Adjustment |
|---|---|---|---|
| Sale price | — | $400,000 | — |
| Garage | 2-car | None | + $15,000 |
| Bathrooms | 2 | 2.5 | − $7,500 |
| Adjusted value | $407,500 |
The dollar amounts above are illustrations only. Real adjustments should come from your local market data, such as paired sales that differ by just one feature.
Bracket the Subject Property
Choose comps that fall on both sides of the subject. Include at least one that's a little larger or better and one that's a little smaller or simpler. When your adjusted values land above and below each other, your price range is supported from both directions. If every comp needs a big upward adjustment, keep looking.
Common Comp Mistakes
✗ Using active listing prices as if they were sales
✗ Picking only the highest sales to please a seller
✗ Ignoring boundaries buyers care about, like school districts
✗ Skipping condition because the square footage matched
✗ Relying on one comp instead of three to six
Where to Find Good Comp Data
The best source for comps is MLS sold data: verified sale prices, dates, photos, and listing details in one place. Public records can confirm sale prices and dates, but they rarely show condition or updates. That's why MLS access matters for every agent who prices homes.
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Want to go deeper? Manfred's Selecting Good Comparables course walks through comp selection and adjustments in detail.
Explore Membership Plus Join MYStateMLS See CE CoursesFrequently Asked Questions
How many comparables should I use?
Three to six is typical. Appraisal reports usually include at least three closed sales, and a CMA is stronger with a few more for support.
How recent should a comparable sale be?
As recent as the market allows. Lenders expect the most recent similar sales, and older sales may need a time adjustment and an explanation of why they were used.
How far away can a comparable be?
There's no single distance rule. The best comps are in the same market area, meaning the places buyers would actually consider as alternatives. Distance matters less than neighborhood, school district, and other boundaries buyers care about.
Can I use active listings in a CMA?
Yes, as support. Active and pending listings show your seller's competition and market direction, but closed sales are what prove value.
What's the difference between a CMA and an appraisal?
A CMA is an agent's estimate of a likely price range, used for pricing and marketing. An appraisal is a licensed appraiser's formal opinion of value, usually ordered by a lender. Using appraisal methods in your CMA helps the two line up.
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