What does "comparable sales" refer to?

"Comparable sales" refers to properties that have been recently sold and are similar to the property being valued. This term is crucial in the real estate appraisal process, as it helps establish a market value for a property based on the sale prices of similar properties in the area. Appraisers look for characteristics such as location, size, condition, and features to ensure that the comparisons are valid. By analyzing these comparable sales, appraisers can derive an appropriate value that reflects current market conditions.

The context of this concept is important as it plays a key role in setting listing prices, evaluating offers, and assessing property investment opportunities. Utilizing comparable sales allows buyers and sellers to make informed decisions based on real market data rather than speculation.