A Good Comparable is based on which factors?

• A. Time, market value, similarity and proximity
• B. Color of the property, number of bedrooms, and age
• C. Owner's income and credit score
• D. Zoning and property taxes

Answer: (A)

A good comparable is built from data that reflects current market conditions and from properties that are truly similar to the subject in key ways and in location.

Time matters because real estate values shift with the market. Using recent sale data ensures you’re comparing to where prices stand now, not long-ago conditions that might no longer apply.

Market value is about the actual sale price of the comparable. You want a genuine transaction price rather than listed prices or opinions, and you adjust for any differences between the subject and the comparable to estimate a true value for the subject.

Similarity means the properties should resemble the subject in important features that drive value—such as property type, size, layout, number of bedrooms and bathrooms, condition, age, and the presence of substantial upgrades. The closer the match, the more reliable the comparison.

Proximity ensures the comparable comes from the same or a very similar neighborhood, because location factors like school quality, desirability, and local market dynamics can vary by area. Keeping the geographic area tight helps control these influences.

Other factors like the color of the property or owner’s financial details aren’t reliable bases for comparison, and while zoning and property taxes influence value, they aren’t sufficient on their own to define a solid comparable. The best comparables balance recency, actual sale price, similarity, and proximity.