Comps (comparable) what is a comp ?

What Is a Real Estate Comp?

A comparable property, or “comp,” is a recently sold property that is similar to the property you are evaluating. Real estate investors, wholesalers, agents, and appraisers use comps to estimate a property’s current market value and determine what buyers may realistically pay.

Not every nearby property is a good comp. The goal is to find properties that are as similar as possible in location, property type, size, bedrooms, bathrooms, condition, and features.

What Is the Standard for a Good Comp?

A strong comp should generally meet these criteria:

* Same property type: Compare a townhome to townhomes, a single-family home to single-family homes, etc. * Within 1 mile: Ideally, the property should be within one mile of the subject property when enough comparable sales are available. * Sold within 6 months: Recent sales provide a better indication of current market conditions. * Similar square footage: A common investor guideline is approximately ±20% of the subject property’s living area. * Similar bedroom and bathroom count: The closer the match, the more reliable the comparison. * Similar condition: A fully renovated property should not automatically be compared with a property requiring major repairs. * Similar neighborhood and amenities: Location, school areas, HOA features, parking, lot size, and other characteristics can affect value.

At Rush N Dush Logistics, we use comparable sales to help determine realistic property values and make informed cash offers. The better the comps, the more accurate the valuation and offer can be.