Comparative Market Analysis (COM) Law and Legal Definition

Comparative market analysis (COM) is a property evaluation that determines property value by comparing similar properties sold in the previous year. It is an evaluation of comparable sold homes of similar size, condition, age and style for sale that are sold recently in a certain neighborhood. COM is also called market comparison appraisal.

The following five factors are usually considered while determining COM:

1.Conditions of sale

2.Financing conditions

3.Market conditions

4.Location comparability

5.Physical comparability

This kind of analysis helps a prospective buyer or a person interested in real estate get accurate and reasonable listing price for a property.