Underwriting

Comparable Sales (Comps)

Recently sold properties similar to the subject, used to estimate value.

Definition

Comps are recently sold properties that share key characteristics with the subject property — location, size, bedroom count, style, finish level. Comps are the foundation of any ARV or as-is valuation. The best comps are within 0.5 miles, sold in the last 3-6 months, within ±15% of the subject's gross living area, and in similar condition.

Related terms

ARV (After Repair Value)

The price a property will sell for once all renovations are complete, established from rec…

MAO (Maximum Allowable Offer)

The highest price an investor can pay for a property and still hit their target profit.

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