Comparable sales (comps)

Comparable sales are recent sales of similar properties in a similar location, used as the primary evidence of what a property is worth.

What makes a sale genuinely comparable

• Recency — generally within the last three to six months; older sales need adjusting for market movement
• Location — same suburb, ideally same street or immediate area
• Property type — similar land area, floor area, bedroom count, age, condition
• Title type — a freehold sale is not comparable to a cross-lease or leasehold
• Sale conditions — an arms-length sale, not a family transfer or mortgagee sale

How to use them

Take three to five genuine comparables, adjust for differences, and form a range rather than a single number. Valuers do this systematically; investors should do it before making an offer.

Common misunderstanding

Agents select comparables that support their argument. The ones supporting a higher price when listing, the ones supporting a lower price when conditioning a vendor. Do your own.

Asking prices are not comparables. Only settled sales count.

In thin markets there may be no true comparables, which is where valuations diverge most and where the risk of overpaying is highest.

Related terms

Last reviewed: 1 August 2026 · General information only, not legal advice.

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