Comparable Sales (Comps)
Recently sold properties similar to the subject in location, size, and condition, used to estimate market value and ARV.
Comparable sales — comps — are the recently closed transactions an investor leans on to value a property. The best comps sit within roughly half a mile, sold in the last few months, and match the subject on bedrooms, bathrooms, square footage, and condition. Active listings and pending sales hint at the market but don't carry the weight of a closed price.
Comps are the raw material for after-repair value, so sloppy comping poisons every number downstream. Adjusting for differences — a finished basement, a smaller lot, a tired kitchen — is what separates a defensible ARV from a hopeful one.
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