Short answer
Appraisers look for at least three recent closed sales that would appeal to the same buyers, ideally from the same neighborhood. Fannie Mae prefers sales from the last 12 months, but allows older or farther sales when they're the best match, as often happens with rural homes on big lots. The appraiser has to explain those choices in the report and adjust for differences.
What makes a sale comparable?
Fannie Mae's Selling Guide (B4-1.3-08) says comparables should share physical and legal characteristics with your home, such as the site, room count, finished area, style and condition, and outside factors like a FEMA flood zone. They don't have to be identical; they should compete for the same buyers. Sales from your neighborhood are the best indicator of value. Comparables from a competing area are allowed when they're the best available, with an explanation.
How many, how old and how far?
- At least three closed sales; listings and pending sales can support the analysis.
- Sales from the last 12 months should be used, but an older sale with a time adjustment may be better than a recent one that needs many adjustments.
- Distance is reported as a straight line with a direction, such as "1.75 miles NW."
- A land sale can't be combined with a home's construction price to create a comparable.
Why might my rural NH home use sales miles away?
Fannie Mae notes that rural homes often sit on large lots in less developed areas, so recent truly comparable sales may be scarce nearby. Sales a considerable distance away, or older sales, can be used if they're the best indicators of value and the appraiser explains why. See mortgages on homes with land.
Can foreclosures and short sales be used?
Yes, if market data shows they're the best sales available. The appraiser must address how common they are in the area and adjust for differences, such as condition, rather than treating them as equal to your home. See how short sales work.
Are FHA comparable sales rules different?
They're similar. HUD's Handbook 4000.1 has FHA appraisers pick sales with similar location and physical features, not similar prices, and include at least three sales that closed within the past 12 months, preferably the most recent six months. Sales between unrelated parties are preferred; a foreclosure transfer to a lender isn't a valid comparable. In a subdivision or condo, resales inside the same development are often the best evidence. In rural or slow markets, older sales can be added with an explanation.
What can I do if I think the comps are wrong?
Your real estate agent can gather closed sales the appraiser may have missed, and you can ask your lender for a reconsideration of value. See if the appraisal comes in low and appraisal condition ratings.
Sources
- Fannie Mae Selling Guide, B4-1.3-08, Comparable Sales (06/04/2025)
- HUD Single Family Housing Policy Handbook 4000.1, Update 18 (August 2026), Comparable Sale Selection
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.