How Appraisers Actually Find Comparable Sales (And Why It’s Not What You Think)

Everyone wants to know:“How did you come up with that value?”

It all comes down to comparable sales—but not in the way most people think.

Let’s simplify this.

First—We’re Not Chasing a Price

This is the biggest misunderstanding.

Appraisers are not trying to “hit” a number. We’re not starting with a price and then finding sales to justify it.

We’re valuing the property itself, not the contract, not the list price, and not what someone hopes it’s worth.

If you start with a price and work backward, you’ll find sales……but they won’t necessarily be the right sales.

Step One: Who Would Buy This House—and Why?

Before I ever pull a comp, I’m asking:

“What kind of buyer is this home attracting?”

Not who they are—that’s irrelevant and not allowed.But what they’re looking for.

• Space for animals?

• A workshop?

• Waterfront lifestyle?

• Close to town and convenience?

Once I understand the why, everything else gets easier.

Because now I know what this home is competing with.

Step Two: What Would They Buy Instead?

This is where the magic happens.

If your home wasn’t available, what would that same buyer choose?

That’s your comp.

Not just a “similar” house—a realistic substitute.

That’s the entire job.

Step Three: Features Matter More Than Price

Buyers don’t shop by price alone—they shop by what they get.

So that’s what I analyze:

• Location and setting

• Lot size and usability

• Condition and updates (or lack of them)

• Size, layout, and functionality

• Extras like pools, barns, guest spaces, garages

Two homes can sell for the same price and have completely different appeal.Only one of them might actually compete with yours.

Step Four: The Market Isn’t Always Easy

Some assignments are straightforward.

Others? Not even close.

Unique homes, rural properties, large acreage, custom builds—these don’t always have perfect matches.

So we adapt.

That might mean:

• Expanding the search area

• Going back further in time

• Using less obvious—but still relevant—sales

That’s not a flaw in the process. That’s experience.

As long as it’s explained and supported, it’s valid.

A Quick Reality Check

A few things I see all the time:

• Adding up upgrades ≠ market value

• List price ≠ market value

• Multiple offers ≠ market value

Those things can influence a deal…but they don’t define what a typical buyer would reasonably pay.

Bottom Line

A true comparable sale is simple:

It’s a property a buyer would have seriously considered instead of yours.

That’s it.

When you understand that, the whole appraisal process starts to make a lot more sense.