How do appraisers choose comparable sales?

Appraisers choose comparable sales by finding recently sold properties that are as similar as possible to the one being valued, in location, size, type, age, and condition, then adjusting each one for its differences to estimate what the subject property is worth. The best comps are recent, nearby, genuinely similar, and verified as completed sales rather than asking prices. These comps are the backbone of the sales comparison approach, the method behind most residential valuations.

By Jose Dante Almeda Jr., PRC Licensed Real Estate Appraiser No. 11261 & Licensed Real Estate Broker No. 33179 · Last updated July 2026

What makes a good comparable

• Recent. The closer to the appraisal date, the better, since markets move. Older sales are used only when nothing newer exists.
• Nearby. Same subdivision or neighbourhood is ideal, because location drives value. A sale a block away usually beats a bigger, newer one across town.
• Similar. Comparable in property type, lot and floor area, age, and condition, so the adjustments needed are small.
• Verified. A real, completed sale with a known price, not a listing or an asking figure.

Why adjustments matter

No two properties are identical, so appraisers adjust each comparable for its differences from the subject. If a comp has an extra bedroom, a larger lot, or a better location, its price is adjusted down to reflect what the subject lacks, and the reverse where the subject is superior. The goal is to answer one question: what would this comparable have sold for if it were just like the property being valued? A licensed real estate appraiser in the Philippines documents these adjustments so the reasoning is transparent.

Why this is the heart of your valuation

Because comps and their adjustments drive the final figure, they are the first place to look if a valuation surprises you. Weak comps, in a thin market with few recent sales, make the estimate less certain, while strong comps make it solid. This is also why local knowledge matters so much: an appraiser who works your area knows which sales are genuinely comparable and which only look that way on paper. It is a big part of how to choose a real estate appraiser.

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