Estimate the fair market value of any property using our professional Real Estate Comps Calculator. This tool allows you to perform a Comparative Market Analysis (CMA) by adjusting comparable sales for a more accurate valuation.
Real Estate Comps Calculator
Real Estate Comps Calculator Formula
$$Market Value = \frac{\sum (Adjusted Sale Price_{n})}{n}$$
$$Adjusted Sale Price = Sale Price \pm Adjustments$$
Source: National Association of Realtors (NAR) | Investopedia
Variables:
- Sale Price: The actual price a comparable home sold for recently.
- Net Adjustments: Financial adjustments made to the comp price to account for differences in square footage, condition, location, or features.
- Adjusted Sale Price: The theoretical price the comp would have sold for if it were identical to the subject property.
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What is a Real Estate Comps Calculator?
A Real Estate Comps Calculator is a professional tool used by real estate agents, appraisers, and investors to perform a Comparative Market Analysis (CMA). By looking at recent sales of similar properties in the same neighborhood, you can pinpoint the most likely selling price for a specific home.
Unlike basic automated valuation models, this calculator accounts for “adjustments.” For instance, if a comparable home has a finished basement and your property does not, you would subtract the value of that basement from the comp’s sale price to find the adjusted value.
How to Calculate Real Estate Comps (Example)
- Identify 3 properties sold in the last 6 months within a 1-mile radius.
- Note their Sale Prices (e.g., $500,000, $510,000, $490,000).
- Calculate adjustments (e.g., add $10k if your house has an extra bathroom than the comp).
- Average the Adjusted Sale Prices to find the target market value.
Frequently Asked Questions (FAQ)
How many comps should I use? Professionals usually recommend at least 3 active listings and 3 recently sold properties for the most accurate results.
What qualifies as a “Comp”? A property should be similar in size, age, condition, and location (usually within the same school district or neighborhood).
What is the difference between an appraisal and comps? Comps are used for market analysis, while an appraisal is a formal valuation by a licensed professional for lending purposes.
Are adjustments always positive? No, adjustments can be negative if the comparable property has superior features compared to the subject property.