Encyclopedia
Comparable sale (comp)
A recent sale of a similar property used to estimate value.
For example: An owner appealing an assessment gathers sales of similar buildings in the area around the valuation date. (Illustration only, not a real deal.)
Official source: BC Assessment appeal guide
Example only, not a real client. Say you are pricing a small industrial building. I pull recent sales of similar buildings nearby, adjust for size, age, condition and lease status, and use those to set a realistic range. The comps support your price when a buyer pushes back.
What I’d tell a friend
Good comps are recent, close by and truly similar. One odd sale should not set your price.
Why it matters to you
Comps are what appraisers, lenders and buyers use to judge price. One unusual sale can skew the picture, so check whether each comp really matches the property you're looking at.
How to use it in your deal
Buyers should ask for the actual comps behind a price, not just averages, and check each one: was it really similar, was it an arm's-length sale, did it include tenants or vacant possession, and were there special terms like vendor financing? Time matters; in a moving market, a sale from eighteen months ago may mislead. Sellers should be realistic about which comps truly match.
Appraisers adjust comps systematically. Owners appealing assessments can use comps as evidence. Tenants can use comparable leases the same way when negotiating rent. Public sale records come from the Land Title Office, and BC Assessment's site shows recent sales for some properties. Commercial deals sometimes close with confidential terms, so verified data can be scarce.
Ask your licensee to explain each adjustment in plain words. Ask for the address and date of every comp so you can check them.
Mistakes I see
Using non-comparable properties. Ignoring sale terms. Using old sales. Relying on asking prices.
In BC and Vancouver
Title transfers are registered through the Land Title and Survey Authority (LTSA); BC Assessment publishes some sales information.
Official sources: Land Title and Survey Authority of BC · BC Assessment appeal guide
What comps are
A comparable sale, or comp, is a recent sale of a property similar to the one being valued. Comps help set a price or test whether an offer is fair.
Commercial comps need more adjustment than homes, because income, leases and building features vary a lot.
Using them well
Look at sale date, location, size, condition, zoning and whether the property sold leased or vacant. Ask what was behind an unusual price.
Combine comps with income-based measures like capitalisation rate (cap rate). I can put together a comp set for your property.
Questions to ask before you sign
- Which sales are truly similar?
- When did they sell?
- Were they arm's-length?
- Were tenants in place?
- What adjustments apply?
Keep reading
Related terms: Appraisal, Price per square foot, Assessment appeal
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General information for British Columbia only. It isn’t legal, tax, accounting or financial advice, laws and rates change, and reading it doesn’t make you my client. Any numbers or scenarios are hypothetical. Check the linked official source and talk to a lawyer, accountant or other qualified professional before you act or sign anything. See the terms and disclaimer.