Comparable Sales (Comps)
Recent sales of similar properties used to estimate the market value of a subject property.
Definition
Comparable sales (comps) are recently sold properties that are similar to the property being valued in terms of location, size, age, condition, and features. Comps are the foundation of the sales comparison approach — the primary method used by appraisers and agents to determine market value.
Good comps are: in the same neighborhood or within 0.5–1 mile, sold within the past 90 days (or 6 months in slower markets), similar in square footage (within 10–20%), similar in bedroom/bath count, and in comparable condition. The fewer adjustments needed, the more reliable the comp.
Investors pull comps via MLS access (through an agent), public records, or data platforms like Redfin, Zillow (for a rough estimate), PropStream, or DealMachine. For ARV analysis on a flip, always verify comps with a local agent who knows the micro-market.
Related Terms
After Repair Value (ARV)
The estimated market value of a property after all renovations are completed.
Appraisal
A licensed professional's independent estimate of a property's market value.
Market Value
The price a property would sell for in a competitive market between a willing buyer and seller.
Absorption Rate
The rate at which available homes sell in a given market during a time period.
Days on Market (DOM)
The number of days a property has been listed for sale before going under contract.
Also in "C"
Cap Rate
Capitalization rate — the ratio of a property's net operating income to its market value.
Cash Flow
The money left over each month after all property-related income and expenses are accounted for.
Cash-on-Cash Return
Annual pre-tax cash flow divided by total cash invested, expressed as a percentage.