What is a real estate comp?

I often forget when I throw out real estate terms out that not everyone is certain of the meaning.  Real estate agents are constantly discussing comps (comparables). 

A comp is a comparable listing or sale sold within the last six months. Characteristics such as location, square footage, room count, lot size and amenities should be similar.

According to Wikipedia: Comparables (or comps) is a real estate appraisal term referring to properties with characteristics that are similar to a subject property whose value is being sought. This can be accomplished either by a real estate agent who attempts to establish the value of a potential client's home or property through market analysis or, by a licensed or certified appraiser or surveyor using more defined methods, when performing a real estate appraisal.

 

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