Investment

Comparables (Comps)

Recently sold properties with similar characteristics -- size, style, age, condition, and location -- used to estimate a property's current market value. Appraisers, agents, and buyers all rely on comps to determine fair pricing. The best comps are sales within the last 90 days in the same neighbourhood, with similar square footage and lot size.

Why It Matters

Comps are the foundation of pricing in real estate. Whether you are buying, selling, or refinancing, the value of your property is ultimately determined by what similar homes have recently sold for nearby. In the GTA, fast-moving markets can make comps outdated quickly, so always look at the most recent data and factor in current market conditions.

Real-World Example

You are considering offering on a three-bedroom semi in Leslieville listed at $1,050,000. Your agent pulls five comparable sales from the last 60 days within a 500-metre radius: three semis that sold for $985,000, $1,010,000, and $1,040,000, and two detached homes that sold for $1,150,000 and $1,200,000. After adjusting for the detached premium, the comp range suggests fair value for your target semi is $990,000 to $1,050,000. You decide to offer $1,015,000, knowing the listing price is at the top of the comparable range.

Ontario & GTA Context

In Ontario, real estate agents access comparable sales data through TRREB (Toronto Regional Real Estate Board) and other local board MLS systems. These systems provide detailed sold data including price, days on market, and property features. MPAC also uses comparables for property tax assessments, though their data may lag the current market by several years. In fast-moving GTA markets, comps from even three months ago can be outdated.

How It Works in Practice

Ask your agent for a Comparative Market Analysis (CMA) before making any offer. Focus on properties that sold, not those that are currently listed, since list prices reflect seller hopes while sold prices reflect market reality. Adjust for differences in condition, lot size, parking, and renovations when comparing.

Common Questions

How many comparables should I look at before making an offer?▾

Aim for at least three to five recent sales of similar properties within the same neighbourhood. If few comparable sales exist, your agent may need to expand the search radius or include slightly different property types with appropriate adjustments.

What makes a good comparable sale?▾

The best comps are properties that sold within the last 90 days, are within a short walk of the subject property, and share similar features like size, style, age, and condition. The closer the match on these factors, the more reliable the valuation.

Can I access comparable sales data without an agent?▾

HouseSigma and other platforms show some sold price data in Ontario, but the most detailed and comprehensive data comes through your agent's MLS access. For a high-stakes purchase, working with an agent who can pull full comp details is worth it.

Related Terms

Subject Property

Price per Square Foot

Related Guides

First Time Buyer

Pricing Strategy

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