Appraisal Blog

Understanding the Role of Comparables (“Comps”) in Your Appraisal

When it comes to determining your home’s fair market value, nothing carries more weight than comparables, or “comps.” Whether you’re refinancing, selling, or securing a home equity line, an accurate appraisal hinges on choosing the right comps. This guide will explain what comps are, how appraisers select them, and how you can help ensure a smooth, accurate valuation.

 


 

What Are Comps?

Comparables (“comps”) are recently sold properties similar to yours in key aspects—location, size, condition, and amenities—and they serve as the benchmark for your home’s value. Appraisers typically use at least three closed sales within the past 3–6 months that are geographically close to your property realtor.com.

Key Attributes of Good Comps

  • Proximity: Within one-half to one mile of your home
  • Recency: Sold within the last 3–6 months (up to 12 months in slower markets)
  • Similarity: Comparable square footage, lot size, age, and condition
  • Style & Features: Similar number of bedrooms/bathrooms, garage size, and any significant upgrades

How Appraisers Select Comps

Appraisers follow a structured process when choosing comps:

Access to MLS Data - Most appraisers pull comps directly from the Multiple Listing Service (MLS), ensuring they use verified, arms-length transactions. Public records may supplement MLS data when needed appraisaltoday.com.

Bracketing Method - To account for differences, appraisers often bracket the subject property by including:

  • One comp that’s slightly superior (e.g., larger lot)
  • One comp that’s slightly inferior (e.g., fewer upgrades)
  • One comp that closely matches

 Adjustments for Differences - If a comp has features your home lacks (or vice versa), appraisers make dollar-value adjustments. For instance, if your home has an extra bathroom, they subtract the estimated cost of that bathroom from the comp’s sale price.

Market Trends & Timing - In rapidly changing markets, older sales may require upward or downward adjustments for timing. Appraisers document these adjustments to reflect current conditions.


Why Comps Matter to You

  1.  Accurate Valuation: Proper comps lead to a valuation that reflects true market value—protecting you from over- or under-pricing your home.
  2. Lender Confidence: Lenders rely on an unbiased appraisal supported by solid comps to approve financing.
  3. Strategic Pricing: As a seller, understanding comps helps you set a competitive asking price that attracts buyers quickly.



Tips to Help Your Appraiser

 

  • Provide Your Own Comps List

Research and share 3–5 recent nearby sales that mirror your home’s characteristics.

  • Document Recent Upgrades

Supply invoices or permits for major improvements (e.g., new roof, HVAC). This helps avoid negative adjustments.

  • Clarify Unique Features

If your home has a rare feature—such as a private dock or solar panels—provide comparable sales with similar amenities.

  • Stay Organized
Have copies of your property survey, floor plans, and plat map ready to eliminate measurement discrepancies.

Common Pitfalls to Avoid

 

  • Using FSBO or Non-Arms-Length Sales: Sales between family members or distressed transactions can skew value.
  • Ignoring Market Shifts: Don’t rely on outdated sales—markets can change quickly.
  • Overlooking Small Differences: Even minor disparities (like a one-car vs. two-car garage) can result in significant adjustments.

Conclusion

Comparables are the backbone of any home appraisal. By understanding how they’re selected and adjusted—and by actively assisting your appraiser with accurate, organized information—you can help ensure a smooth, fair valuation of your property. Mastering comps puts you in control of your home’s financial destiny.

Note: This content was generated with AI assistance and reviewed by an experienced appraiser for accuracy.




Posted in:General
Posted by RICHARD DANIEL, SRA on June 28th, 2025 12:00 PMLeave a Comment

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May 15th, 2025 2:26 PM

5 Key Steps in the Home Appraisal Process


Helping Hampton Roads homeowners understand what to expect when ordering a home appraisal

 


Every home purchase, refinance, or tax appeal hinges on one critical number: the appraised value. Understanding the home appraisal process not only reduces surprises, it empowers you to make smarter real-estate decisions in Virginia Beach, Norfolk, Chesapeake, and beyond. Here are the five essential steps Real Estate Appraisal Services, Inc. takes to deliver accurate, reliable valuations—every time.
1. You Submit Your Order Online

 

The process starts with you! Simply order your home appraisal through our secure online form. You’ll provide basic property details—address, type of loan, and desired turnaround time—and we’ll confirm your fee quote and appointment window within 24 hours.

Tip: Be sure to include your property’s full street address exactly as it appears on your deed to help us match municipal records quickly.

 


2. Preliminary Research & Data Collection

 

Once your order is in, we gather public records and recent sales data (known as “comps”) for homes similar to yours. We consult multiple sources—county tax records, the MLS, and tools like the Appraisal Foundation’s Official Site—to ensure we’re using the most up-to-date information.

  • Tax records confirm lot size, year built, and ownership history.

  • MLS and sales databases provide sale prices of comparable homes in your neighborhood.

  • Automated Valuation Models (AVMs) may give an estimate of a possible sales price but in many cases the “comps” used in these models are not locationally comparable.  Additionally, these models use comps that are not completely verified and they never consult the selling agents that know your particular neighborhood. 

 


3. On-Site Inspection

 

Next, we visit your property to:

  1. Determine your gross living area and we observe your site’s features.

  2. We Inspect interior features (bedrooms, baths, kitchens and any upgrades).

  3. Evaluate condition—roof age, HVAC, foundation, and any deferred maintenance.

  4. Photograph key elements (interior, exterior, and comparable properties).

This firsthand inspection ensures no important detail—like a new deck or finished basement—gets overlooked.

 


4. Analysis & Valuation

 

Back at the office, we reconcile all gathered data to arrive at a final value. Our analysis includes:

  • Sales Comparison Approach

  • Cost Approach (especially for new construction)

  • Income Approach (for rental properties or multi-unit homes)

By triangulating these methods, we deliver a well-supported appraised value that stands up to lender reviews and tax assessors alike.

 


5. Report Delivery & Review

 

You’ll receive a comprehensive appraisal report within 3-5 days after the inspection date. It includes:

  • Final value conclusion

  • Market trends and neighborhood analysis

  • Detailed comparables with sale prices and adjustments

  • Photographs of both interior and exterior

  • Appraiser’s certification and signature

You can review the report immediately and share it with your lender, attorney, or tax consultant. If you have any questions or wish to challenge an item, we are happy to discuss the findings.

 


Why Choose Real Estate Appraisal Services, Inc.

 

  • Local Expertise: Decades of experience in Hampton Roads real estate.

  • Fast Turnaround: Secure online ordering and same-day confirmations.

  • Accuracy You Can Trust: Fully compliant with USPAP standards.

Ready to get started? Request your appraisal today and gain confidence in your property’s true value!

 


Frequently Asked Questions

 

  1. How long does an appraisal take?
    Typically 3–5 business days after inspection. Rush options are available.

  2. Can I attend the inspection?
    Absolutely! We welcome homeowners to point out upgrades.

  3. What if I disagree with the value?
    Contact us for a free consultation—we are happy to discuss your concerns.

 


By following these five steps, you’ll know exactly what goes into determining your home’s appraisal value. Armed with this knowledge, you can navigate sales, refinances, and tax appeals with confidence.
External Resource: For more on how comparable sales influence appraisals, check out Zillow’s guide to What Are Comps and How Are They Used?


Posted in:General
Posted by RICHARD DANIEL, SRA on May 15th, 2025 2:26 PMLeave a Comment

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