Which homes should an appraiser consider when finding comps?

When an appraiser is tasked with finding comparable properties, or "comps," the primary focus is on homes that have recently sold in the subject's area. This is because recent sales provide the most accurate reflection of the current market value, as they reveal the prices buyers are actually willing to pay in the prevailing market conditions.

Recent sales data helps appraisers assess market trends, such as pricing, demand, and property features that are similar to the subject property. This information is critical since it enables the appraiser to draw meaningful comparisons and assess the value based on actual transactions rather than speculative prices or listings.

While homes currently listed for sale might provide some context as to what sellers hope to achieve, they do not necessarily reflect market realities since prices can fluctuate and may not be indicative of the final sale prices. Homes with expired listing agreements may indicate issues such as overpricing or lack of interest, but again, they do not provide reliable sale data. Therefore, relying on recently sold properties is the best practice for determining fair market value.