Comparables

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DEFINITION of 'Comparables'

A valuation technique in which a recently sold asset is used to determine the value of a similar asset. This technique is often used in real estate to determine the initial sale price of a property.

BREAKING DOWN 'Comparables'

This technique is helpful for accurately appraising the value of any asset. For example, a real estate agent may appraise the value of a home based on the most recent selling price of a house in the same neighborhood with similar attributes, such as square footage and the number of bedrooms and bathrooms.

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