Whether you’re preparing to sell your Staten Island home or make a competitive offer as a buyer, understanding real estate comps is crucial to determining fair market value. Real estate comparables – or “comps” – are recently sold properties that indicate the value of a subject property. This comprehensive guide will walk you through the CMA process, explain how to pull accurate comps, and show you exactly how these comparable sales determine your home’s price.
What Are Real Estate Comps?
Real estate comparables – or “comps” – are comparable properties in a specific location you want to buy or sell in. These are properties that have recently sold and share similar characteristics with the home you’re evaluating.
Sellers, especially those selling for sale by owner (FSBO), use comps to determine the right listing price for their home. Meanwhile, buyers reference comparables to decide how much to offer on a home.
Real estate comps aren’t just simple price comparisons. A real estate agent can prepare comps for you using a private database called a Multiple Listing Service (MLS). This comprehensive analysis considers multiple factors:
- Location and neighborhood features
- Square footage and lot size
- Number of bedrooms and bathrooms
- Age and condition of the property
- Recent renovations or upgrades
- Special features like pools or waterfront access
The key difference between comps and other valuation methods? A comparative market analysis (CMA) provides an estimated price for a home by comparing it to similar homes in the area that have recently sold, while a formal appraisal establishes the property’s official value for lending purposes.
Why Comparable Sales Matter
Understanding how comparable sales determine home value is essential for both buyers and sellers in today’s competitive market. Here’s why comps analysis matters:
For Sellers:
- CMAs help sellers find their homes’ “best” listing prices. The price considered the “best” is not too low that you lose profits and not too high that it prevents the property from selling entirely
- Properly priced homes sell faster and attract more qualified buyers
- Accurate pricing based on comps helps avoid lengthy price reductions
For Buyers:
- For buyers, a CMA can tell you whether a property has a fair value and help find a suitable, comparative offer that will be seen as credible
- Understanding comps helps you avoid overpaying in competitive markets
- Strong comp data strengthens your negotiation position
The impact on determining home value is significant. Market conditions are a wild card with comparative market analysis and price setting in general. In a seller’s market with limited inventory, homes may sell above comp values, while in a buyer’s market, properties might sell below recent comparables.
The Comparative Market Analysis (CMA) Process
An essential part of a real estate agent’s responsibilities includes being able to clearly communicate a pricing strategy for any property and identify current market trends. Here’s the comprehensive 7-step CMA process that real estate professionals follow:
Step 1: Evaluate the Neighborhood
Beginning a CMA starts with checking out the neighborhood. This would include the name of the subdivision and any nearby amenities like swimming pools, recreational and shopping centers, the community walk score, and how safe and attractive the area is.
Step 2: Gather Subject Property Details
Whether you’re evaluating a listing for a seller client or a potential property purchase for a buyer, you’ll want to include details about the subject property. This includes the number of bedrooms and bathrooms, home size, lot size, amenities (e.g. pool), age of the property, any renovations or upgrades, the condition of the property, its construction or design style.
Step 3: Select Comparable Properties
There are two types of comparable properties you can include in your CMA report: recently sold and active/pending listings. The strongest pricing indicator will be properties that have recently sold and are within close proximity to the subject property.
Step 4: Research Market Data
The local MLS is usually the best source of comparable home sales, because the information tends to be the most accurate. This is where real estate professionals access the most comprehensive and up-to-date sales information.
Step 5: Make Adjustments for Differences
By subtracting these figures, we can see what the comp would have sold for assuming it did not have the extra bedroom and square footage, and subsequently, the market value of our subject property.
Step 6: Calculate Price Range
After making all necessary adjustments, agents determine a recommended price range based on the adjusted comp values and current market conditions.
Step 7: Present Findings
Here’s where you’ll bring your research and expertise together to create one cohesive report. It should be easy for your client to read and understand.
Key Factors That Shape a Comp
When analyzing real estate comps and CMA pricing, several critical factors influence property values:
Location
Location matters. In some areas, a property’s value can change from neighborhood to neighborhood, from block to block, or even within 100 yards. Start by looking for comps within a 1-mile radius, and move out to 5 miles if necessary.
Square Footage
Square footage plays a significant role in comparing home values. After all, if one home has 1,000 square feet and another 2,000 square feet, you are buying a larger home, and it should cost more to purchase.
Bedroom and Bathroom Count
A home’s value typically increases when there are more bedrooms and bathrooms. This translates into a higher sales price and considering higher comps.
Age and Condition
Consider houses built within a 5-year range of your home being built. Many assume that an older home is in need of more work and updates.
Market Timing and Seasonality
Date of sale: Markets can change rather quickly, so choosing comps that have recently sold can provide a better indication of your subject property’s home versus a more dated comp. A rule of thumb is to choose homes that have sold no more than 6 months ago.
How to Pull Accurate Comps
Finding reliable comparable sales requires both the right tools and methodology:
MLS Access
You can look up the search criteria/function by going into your MLS system or using one of the free public real estate websites listed above. From there, type in the address of your subject property and pull up a half-mile radius around the property.
Public Records
County record sites can provide an even more in-depth look at the characteristics and sales prices of specific properties and area trends.
HUD Guidance
When dealing with FHA-financed properties, appraisers must cite some specific pieces of market research, including: Two comparable homes sales completed within 90 days. This ensures accurate valuation for government-backed loans.
Online Tools
Robert DeFalco Realty’s agent directory can help you find an experienced real estate agent who is well-versed in navigating the MLS and finding appropriate comps for your property.
Best Practices for Comp Selection:
- In the search criteria, make sure the initial square footage you are looking for comparable properties is within +/-20% of the subject property
- Focus on sold properties within the past 3-6 months
- Prioritize properties in the same subdivision or neighborhood
- Consider only the same property types (single-family, condo, etc.)
Adjusting Comps Like a Pro
Making accurate adjustments is crucial for proper comps analysis:
For example, one comp may have an extra bedroom, valued at $3,000, which you would add to the sold price of that comp. Another comp may have one less bedroom than the listing, so you’d subtract $3,000 from that comp’s sold price.
Here’s a simple adjustment table example:
| Feature | Your Home | Comp #1 | Adjustment |
|---|---|---|---|
| Bedrooms | 3 | 4 | +$5,000 |
| Bathrooms | 2 | 2 | $0 |
| Square Feet | 1,800 | 2,000 | +$4,000 |
| Garage | 2-car | 1-car | -$3,000 |
| Adjusted Price | $425,000 | $431,000 |
You’ll need to look at other comparables where the primary difference is the bedroom count, and use that difference in sales price to determine the dollar amount to attach to the value of a single bedroom.
Important: Avoid double-counting features. If a home’s higher price already reflects recent renovations, don’t add additional value for individual upgraded components.
Avoid These Common Pricing Mistakes
When conducting comps analysis, steer clear of these pitfalls:
Over-pricing Based on Emotion
Many sellers overestimate their home’s value due to emotional attachment. Stick to objective comp data rather than personal feelings about the property’s worth.
Using Active Listings Instead of Sold Properties
Active and pending listings will give you insights into whether the pricing trends are remaining the same or shifting, but sold properties provide the most accurate valuation data.
Too Small Sample Size
A quality CMA should include at least three to five comparable properties that have sold within the past three to six months. Using fewer comps can lead to inaccurate pricing.
Ignoring Property Condition
If the house was in disrepair and needed a lot of work and investment to make it livable, the price the home last sold for may reflect a fixer-upper. Always account for condition differences.
Local Snapshot: Staten Island 2025 Market
Understanding your local market is essential for accurate pricing. Here’s the current Staten Island real estate landscape:
- Median Sale Price: The median home list price in Staten Island was $738,000 in April 2025, up 7.3% from the previous year
- Days on Market: Homes in Staten Island had an average listing age of 88 days in Apr 2025, down by 54.0% compared to the previous year
- Market Activity: 72.7% of homes here sold below asking price last month
- Price Trends: In March, the median home sale price in Staten Island was $673K, a 2.4% change year-over-year
This data shows Staten Island remains a competitive market with steady appreciation, though buyers still have negotiating power as most homes sell below asking price.
For the most current Staten Island listings and market data, explore our listings or use our search tool to find properties in specific neighborhoods like Richmondtown.
When to Hire an Appraiser
While CMAs provide excellent pricing guidance, certain situations call for a professional appraisal:
Cost Considerations: FHA appraisals usually cost a few hundred dollars, about the same price as a conventional home appraisal. Standard appraisals typically range from $400-$700.
When an Appraisal is Necessary:
- For FHA or VA loan requirements
- Estate settlements or divorce proceedings
- Property tax appeals
- When significant time has passed since the last valuation
Objectivity Benefits: The key difference is a CMA establishes a home’s price, whereas an appraisal establishes its value—price is what you pay for something while value is what it is worth.
For detailed guidance on appraisal requirements, refer to HUD’s appraisal report guidance.
FAQs About Real Estate Comps
How far back should comps go? Ideally, look for properties sold within the last three months — and nothing sold more than a year ago. In slower markets, you may need to extend to 6 months.
What if there are no recent comps in my neighborhood? Location: Find recently sold properties within a close radius of the subject property, usually within one mile. If necessary, expand your search radius or look for similar neighborhoods nearby.
Can I do my own CMA without an agent? Yes, Websites such as Rocket HomesSM have search tools that can make finding home values and recent sales prices quick and easy. However, agents have access to more comprehensive MLS data.
How many comps do I need? Whether you are buying or selling a house, it’s a good idea to find at least 3 similar properties to know that you’re in the right ballpark regarding price.
What’s the difference between assessed value and market value? Assessed value is used for tax purposes, while market value (determined by comps) reflects what buyers are actually willing to pay in the current market.
How accurate are online estimates like Zestimates? Zillow has a nationwide median error rate of 1.9 percent for on-market homes and 6.9 percent for off-market homes. Professional CMAs using recent comps are typically more accurate.
Ready to Price Your Home?
Understanding real estate comps is the first step to pricing your home competitively. Whether you’re planning to sell your Staten Island property or want to ensure you’re making a fair offer as a buyer, accurate comparable sales analysis is essential.
At Robert DeFalco Realty, we provide comprehensive CMAs using the latest MLS data and our deep knowledge of Staten Island neighborhoods. Our experienced agents know how to identify the most relevant comps and make precise adjustments to determine your home’s true market value.
Ready to discover what your home is worth? Get Your Free CMA from our expert team today. We’ll analyze recent sales in your neighborhood and provide a detailed report showing exactly how comparable sales determine your home’s price.
For buyers searching for their dream home, browse Staten Island homes for sale to see current inventory and pricing trends across the borough.
Have questions about real estate comps or the current Staten Island market? Call us at 718-987-7900 for personalized guidance from our local experts.