What Are Comparable Sales and How Do They Affect My Offer in San Diego?

What Are Comparable Sales (Comps)?

Comparable sales — commonly called comps — are recently sold properties that are similar to the home you are considering in terms of location, size, condition, age, and features. Comps are the primary tool used by real estate agents and appraisers to determine market value for any specific property in San Diego.

What Makes a Good Comp

• Recency: Ideally sold within the last 60 to 90 days — market conditions change, and older sales may not reflect current values
• Location: Within the same neighborhood or within a quarter to half mile of the subject property
• Size: Within 15 to 20 percent of the subject property's gross living area
• Age and condition: Similar vintage and overall condition
• Features: Similar lot size, bedrooms, bathrooms, garage, and notable amenities like a pool or ADU

How Your Buyer's Agent Uses Comps

Before you make an offer on any San Diego home, your buyer's agent should run a complete Comparative Market Analysis using the most recent and most comparable sales. This tells you whether the asking price is supported by the market, how high you need to offer in a competitive situation, and what value an appraiser is likely to assign — which affects your loan amount.

Comps and Appraisal Risk

In fast-appreciating San Diego markets, the most recent closed sales comps may lag the current market — meaning appraisers may assign a value below your agreed purchase price. Understanding the comp landscape before you offer allows you to assess this appraisal gap risk and decide whether to include an appraisal contingency waiver or appraisal gap coverage clause in your offer.

When Comps Are Thin or Missing

In some San Diego neighborhoods — particularly unique property types, very high price points, or small condo communities — truly comparable sales can be scarce. This situation creates both uncertainty and opportunity: the valuation is more subjective, which can work in your favor with the right offer strategy. Rieder Homes Group's deep market knowledge is particularly valuable in thinly-traded market segments.

Related Reading on RiederHomes.com:

→ Blog #59: CMA Explained

→ Blog #60: Days on Market

→ Blog #86: Making an Offer

→ Blog #90: Appraisal Contingency

— Mance Rieder, Broker Associate | Rieder Homes Group | REAL Broker | riederhomes.com | 858-295-0556