Real Estate Comps: How to Pull and Analyze
Comparable sales analysis (pulling comps) is the foundation of every property valuation in real estate. Whether you are calculating ARV for a flip, estimating market value for a rental acquisition, or pricing a wholesale deal for your buyer list, accurate comps determine whether your numbers are reliable or fiction.
What are real estate comps?
Comps are recently sold properties that are similar to the property you are evaluating (the subject property). By examining what similar properties actually sold for, you can estimate what your subject property is worth. The key word is "similar." The more closely a comp matches your subject in location, size, condition, and features, the more reliable your valuation.
Where to find comp data
MLS (Multiple Listing Service): The most comprehensive and accurate source. MLS data includes sale price, days on market, concessions, property details, and photos. Access requires a real estate agent relationship or a license. Most investor-friendly agents will pull comps for you at no cost.
Property data platforms: Services that aggregate public records, MLS data, and property information. These give investors direct access to comp data without needing an agent for every query.
County recorder/assessor: Public records show deed transfers and sale prices (in disclosure states). Free but limited: no photos, no condition details, no days on market.
Zillow, Redfin, Realtor.com: Consumer sites with sold data. Useful for quick screening but less reliable than MLS data. They may show listing price rather than actual sale price, and data can be delayed.
The 5 criteria for selecting comps
1. Proximity (within 0.5 miles)
Location is the strongest predictor of value. The closer a comp is to your subject, the better. In urban and suburban areas, stay within 0.5 miles. In rural areas, expand to 1-2 miles if necessary. Never cross major neighborhood boundaries (highways, railroad tracks, rivers, school district lines).
2. Recency (within 6 months)
Real estate markets change. A comp from 12 months ago may reflect a different market. Prioritize sales from the last 3 months, and only use 4-6 month sales if you cannot find enough recent ones. In rapidly changing markets, 3-month data is strongly preferred.
3. Size (within 20% of square footage)
A 1,400 sqft home should be compared to homes between 1,120 and 1,680 sqft. Larger differences require significant adjustments that reduce accuracy.
4. Bedroom and bathroom count (match or +/- 1)
A 3-bed/2-bath should be compared to 3/2 or 3/1 or 4/2 homes. Each bedroom or bathroom difference requires a $5,000-$15,000 adjustment, which adds uncertainty.
5. Condition (match the renovation level)
If you are estimating ARV (post-renovation value), use comps of renovated homes. If estimating as-is value, use comps of similar-condition homes. Mixing conditions produces unreliable results.
How to adjust comps
After selecting your comps, adjust each one's sale price to account for differences from your subject property. The adjustment answers the question: "If this comp were identical to my subject, what would it have sold for?"
| Feature | Typical Adjustment |
|---|---|
| Square footage | $20-$40 per sqft difference |
| Bedroom | $5,000-$15,000 per bedroom |
| Bathroom | $5,000-$10,000 per bathroom |
| Garage (2-car) | $10,000-$25,000 |
| Pool | $5,000-$15,000 (market dependent) |
| Lot size | $5,000-$20,000 for significant differences |
| Age/condition | $3,000-$15,000 |
See our comp adjustment guide for detailed methodology and examples.
Interpreting your results
After adjusting all comps, take the median adjusted value. This is your estimated property value. Cross-reference against active listings to validate. If your estimate seems high relative to what is currently listed, be more conservative.
Document your comps and adjustments. When you present a deal to buyers or use the valuation for your own analysis, having the supporting data builds credibility and catches errors.
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- After Repair Value: What It Is
- How to Adjust Comps
- How to Use MLS for Comps
- The 70% Rule Explained
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