What Are Comparable Sales?
Comparable sales (or comps) are recently sold properties that are similar to the subject property in location, size, condition, age, and features. Comps are the foundation of property valuation in real estate — they provide objective, market-based evidence of what buyers are currently paying for similar properties. Accurate comp selection is the single most important skill in deal analysis.
Comp selection criteria
Location: Within 0.5-1 mile of the subject, ideally in the same subdivision or neighborhood. Crossing major roads, school district boundaries, or natural barriers (rivers, highways) can invalidate a comp even if it is physically close.
Recency: Sold within the last 6-12 months. More recent comps carry more weight because they reflect current market conditions.
Size: Within 15-20% of the subject's square footage. A 1,500 sq ft comp for a 2,500 sq ft subject is too different.
Age and condition: Similar year built and renovation level. A newly renovated comp validates an ARV estimate. An unrenovated comp supports an as-is value.
Property type: Same classification (SFR to SFR, condo to condo, etc.).
Comp adjustments
No two properties are identical. Appraisers and investors make adjustments for differences: add value for features the subject has that the comp lacks (extra bedroom, pool, garage), subtract for features the comp has that the subject lacks. Typical adjustment amounts: $5,000-$15,000 per bedroom, $3,000-$10,000 per bathroom, $5,000-$20,000 for a garage, $10,000-$30,000 for a pool (varies by market).
For wholesalers
Presenting strong comps in your marketing package is essential. Buyers will run their own comps, but providing a well-selected set of comparables demonstrates your analysis is credible. Include 3-5 comps with photos, key details, sale price, and your adjustment rationale.