Home / Explore / Buy a home / Home loan economics / Comparable – what does that mean?

Comparable – what does that mean?

A technique for determining the value of an asset by comparing it to recently sold assets of similar value. In real estate, the initial sale price of a property may be determined by studying comparable properties.

For example, when selling a home, a real estate professional may recommend a price after considering recent selling prices of homes in the same neighborhood with similar square footage, number of bedrooms, bathrooms, and lot size.

Compare houses in hands image