What term is used when analyzing comparable properties in relation to the subject property?

The term "comparability" is essential in the context of real estate when analyzing similar properties, known as comparables or "comps," in relation to the subject property. When determining the market value of a property, real estate professionals evaluate various characteristics such as size, location, age, condition, and features of these comparable properties. By assessing how these factors align with those of the subject property, realtors can make informed conclusions about pricing and value.

This process is critical to ensuring an accurate appraisal or valuation, as it helps to identify market trends and reflects the realistic price expectations for a particular property. Understanding the comparability of other properties allows realtors to justify the listing price or suggest necessary adjustments to attract buyers while remaining competitive in the market.