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Characteristics of an asset that are similar to those of another asset. Comparables are especially important in real estate when appraising the value of a property. For example, if an appraiser is attempting to determine the value of a house, he may use the comparables of other houses in the neighborhood, such as the number of bedrooms or the square footage, when making the determination.


In an appraisal, recently sold or leased properties similar to the property under analysis,such that a review of the sales prices of the comps will assist in determining a value of the subject property.The properties need not be identical,as long as they are reasonably similar and the appraiser can make adjustments for features that differ.These may include property amenities,age of the improvements, traffic counts and market area, time and conditions of the sale, and anything else recognized by the market as having value.

References in periodicals archive ?
Practitioner's Perspective," supra note 6 observes that "while the study states that the taxpayer may rebut the use of subsequent experience, the required burden of showing that unrelated parties would not have provided for adjustments in cases of inexact comparables appears too difficult to me.
This could prove to be an almost impossible burden for a taxpayer to satisfy because of the high standard and the lack of ability to locate comparables.
The Report usefully suggests some criteria that are applied in selecting comparables.
The APA Office generally requires the comparables to have complete financial data available for a specified period of time (e.
The guidelines emphasize the arm's-length principle and the use of transaction-based methods that rely on comparable uncontrolled transactions.
These methods include the comparable uncontrolled price method, the resale method and the cost plus method.
Moreover, although we applaud the listing of the factors and issues to be considered in assessing comparability, we believe that the temporary regulations unnecessarily restrict the ability of taxpayers to rely on comparables in determining an arm's-length price.
9) More important, the "make-orbuy" analysis--which could eliminate the use of potential comparables by hypothesizing what a taxpayer could have done--is contrary to the principle that a taxpayer may structure its tax affairs in any reasonable manner.
The proposed regulations generally require a comparison of a related party's operating profit ratios with those of comparables for the tax year at issue, as well as the first preceding year and the first succeeding year.
The CUT method also applies to related transactions similar but not quite comparable to unrelated transactions.