Comparable Sales (Comps)

What is Comparable Sales (Comps)?

Comparable sales, commonly called comps, are recently sold properties that are similar to a subject property in terms of location, size, age, condition, and features. Comps are the foundation of property valuation in real estate, used by investors, appraisers, and lenders to establish what a property is worth in the current market. For distressed property investors, comps are essential for calculating after-repair value (ARV) and determining maximum purchase prices.

The most reliable comps share these characteristics with the subject property: located within a half-mile radius (or the same neighborhood), sold within the last 3-6 months, similar square footage (within 10-20%), similar bedroom and bathroom count, similar lot size, and in renovated condition (for ARV comps). Adjustments are made for significant differences — for example, adding value for an extra bedroom or subtracting for a smaller lot.

In distressed property markets, finding accurate comps can be challenging because many transactions occur off-market and may not be reported at full detail. Investors often track two sets of comps: 'as-is' comps (what similar distressed properties have recently sold for) to validate their purchase price, and 'renovated' comps (what similar properties in good condition have sold for) to estimate ARV.

Ugly House Finder provides property details including year built, lot size, bedrooms, bathrooms, and tax assessment values that help investors quickly evaluate whether a distressed property's characteristics match available comps in the area.

Example

Three comparable sales of renovated homes within two blocks sold for $155,000, $162,000, and $148,000, establishing an ARV of approximately $155,000 for the distressed property under evaluation.

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