What Is Sold Comps?
Sold comps are similar properties that have sold recently—same bed/bath, similar sq ft, same neighborhood. You use them to estimate market-value or arv for deal-analysis and brrrr. Sources: MLS, Zillow, Redfin, county records. Aim for 3–5 comps within 90 days. Apply adjustment-factors for differences. Sold-comps drive appraisals and your own valuation. Don't overpay—use comps to justify your offer.
Sold comps (comparable sales) are similar properties that have recently sold—used to estimate the market value or after-repair value (ARV) of a subject property by comparing size, condition, location, and features.
At a Glance
- What it is: Similar properties that have sold recently
- Why it matters: Basis for market-value and arv
- Ideal: 3–5 comps, same bed/bath, same submarket, within 90 days
- Adjust for: Condition, size, features, sale date
- Sources: MLS, Zillow, Redfin, county records
How It Works
Selection criteria. Same bedroom and bath count. Similar square footage (±15%). Same neighborhood. Recently sold (ideally 90 days). Same property type. Arm's-length transactions (not family sales, estate sales, or distressed).
Data points. Sale price. Sale date. Bed/bath, sq ft. Days on market. Key features. Condition. Use this to build a comp grid.
Adjustments. Subject has 1,500 sq ft; comp has 1,400. Add $X per sq ft for the difference. Subject needs $20K in rehab; comp was turnkey. Subtract. Apply adjustment-factors to get an adjusted value for each comp. Average or median = estimated value.
ARV for value-add. For brrrr or fix-and-flip, use comps of renovated properties to estimate arv. Don't use distressed comps for ARV—use move-in-ready or turnkey-property comps.
Real-World Example
Marcus in Cleveland. Marcus was evaluating a fixer-upper for brrrr. He found 5 sold-comps of renovated 3-bed, 2-bath homes in the same neighborhood: $168,000, $172,000, $175,000, $178,000, $182,000. After adjustment-factors for lot size and garage, his arv range: $170,000–$176,000. He used $173,000 for his model. Purchase: $142,000. Rehab: $24,500. Total: $166,500. He had $6,500 cushion. He bought it.
Pros & Cons
- Objective basis for value
- Supports offers and deal-analysis
- Drives arv for value-add
- Aligns with appraiser methodology
- Comps can be thin in unique markets
- Requires judgment on adjustments
- Market moves—comps can stale quickly
Watch Out
- Wrong comps for ARV: Use renovated comps for ARV, not distressed
- Outlier comps: Toss obvious outliers; they skew the average
Ask an Investor
The Takeaway
Sold comps are the basis for market-value and arv. Get 3–5, adjust for differences, and arrive at a supported value. Use them for every purchase and brrrr analysis.