How do you choose good comps for a wholesale deal?
Good comps are recent, close and similar: sold in the last three to six months, usually within a mile, and matching the property’s size, type, age, bedrooms and bathrooms. For ARV, use sales of renovated homes bought by regular buyers, not distressed or investor sales.
A sale far below the others is often an as-is or investor purchase. Left in the average, it pulls the ARV down. Check how the sale was listed and who bought it before you trust it.
Look at photos where you can. Two homes with the same size and street can be worth very different amounts if one is renovated and one is not.
Common mistakes
- Using sales from a different school district or across a major road.
- Treating listing prices as sale prices.
- Picking only the highest sales to support a target price.
More questions
How far back should comps go?
Three to six months is ideal; go back further only when there are not enough recent sales, and adjust for market changes.
Can I use active listings as comps?
Active listings show competition, not value. Use closed sales for ARV and listings only as context.
What makes a comp misleading?
A sale between relatives, a distressed or investor sale, or a home in very different condition. Check how the sale was listed before trusting it.