Comparable Sales (Comps)

Comparable sales (or "comps") are recently sold properties in the same area with similar characteristics to a subject property, used as the most reliable basis for estimating market value. Agents, valuers, buyers, and algorithmic valuation models all rely on comps, for the simple reason that what similar properties actually transacted for is the strongest available signal of what this one might transact for.

A good comp matches on: location (same suburb ideally, neighbouring suburbs as a fallback), property type (house, unit, townhouse), bedrooms and bathrooms, land size (within +/-30% for houses), floor area (within +/-30%), and recency (within 6-12 months, adjusted for subsequent market movement). Five or more good comps produce a reliable range; fewer than three should be treated as indicative only.

Comps have known limitations. Unusual properties (heritage, waterfront, very large or very small) have few good comps, so algorithms struggle here. Markets in rapid transition (hot streets, gentrifying suburbs, recent zoning changes) have comps that may no longer be representative. Private sales with non-arm's-length terms can distort recorded prices.

Despite limitations, comparable sales remain the most trusted valuation method available. PropRadar's value estimates and investment scores lean heavily on comps, tiered from tight matches (type + beds + size) through to broader fallbacks when close comps aren't available.