- Refers to "comparable properties," that are used for comparative purposes in the appraisal process. Comps are recently sold properties that are similar in size, location, and amenities to the property being sold. Comps help an appraiser determine the fair market value of a property.
apples-to-apples, measure against another, juxtapose
Related Terms and Acronyms
- Appraisal — Definition,
- An estimate of the market value of a piece of real estate made by a competent professional who knows local real estate prices and markets.
- Comparative Market Analysis (CMA) — Acronym, Important,
- A method of estimating a property's value by comparing the sales prices of similar properties that have sold recently.
- Cul-De-Sac (Cldsc, Culd) — Abbreviation,
- A dead-end street, often with a broad circle at the end.
- Current Market Value (CMV) — Acronym,
- The estimated price determined by the recent sale of similar properties.
- Principle of Conformity — Definition,
- The notion that a house will fetch a fair price if it is situated among houses of similar size, style and condition.
- Principle of Progression — Definition,
- The notion that a smaller house's value will be enhanced if it is near larger, fancier houses.
- Principle of Regression — Definition,
- The notion that the value of a larger or fancier house will be reduced if it is near smaller, lower-priced houses.