In real estate, what does the term ‘market comp’ refer to?

The term "market comp" refers to a comparative market analysis, which is a key tool used in real estate to determine the value of a property. This analysis involves comparing the property in question to similar properties that have recently sold in the same area, taking into consideration factors such as size, condition, location, and amenities. The goal of a market comp is to provide an accurate estimate of a property's market value based on current market conditions and the sale prices of comparable properties. This is particularly important for pricing a home for sale or for making an offer on a property.

The other options do not accurately define what a market comp represents. A contractual agreement refers to any legally binding contract, which is not specific to property valuation. A type of mortgage pertains to financing options available to buyers rather than assessing value. Lastly, a zoning classification relates to land use regulations, which do not directly impact the comparative assessment of property values. Hence, a comparative market analysis is the clear and correct identification of what a market comp signifies in real estate practice.