Want to avoid overpaying for your next flip? Start with the comps. Understanding comps benefit investors for both short term and long terms goals for purchases.
As an investor, you’re not just buying property: you’re buying into market timing, pricing trends, and future potential. That’s where comps give you better direction to making a smarter investment.
What are comps in real estate?
A comparable, or comp, is a recently sold property that shares key features with the one you’re evaluating. Think square footage, bed/bath count, lot size, school zone, and condition.
Using the MLS (Multiple Listing Service), real estate professionals pull recent sales (usually within 3–6 months) to produce a Comparative Market Analysis (CMA). This data-driven report shows:
- Recent sales prices of similar homes
- Asking price vs. final sale price
- Average days on market
- Local market shifts (interest rate impact, seasonal pricing, etc.)
This is important information for any investor deciding what to offer, how to price a flip, or whether the market is hot or cooling.
Why investors should pay attention to comps
Real estate comps help investors:
✅ Spot undervalued properties
✅ Avoid overpaying in competitive markets
✅ Accurately price flips or rentals
✅ Understand neighborhood trends
✅ Track appreciation over time
Say you’re buying a rental in a high-demand area. Comps can tell you if rental prices are rising, stagnating, or falling. They show how quickly homes are selling and what upgrades buyers are paying extra for.
CMA = Smarter, Faster, More Confident Investing
At Marketplace Homes, we provide detailed CMA reports to investor clients complete with links to the actual listings so you can verify the numbers, spot trends, and act fast.
Our reports help investors like you:
🔹 Price properties for profit
🔹 Understand what local buyers want
🔹 Make data-backed decisions that align with your goals
Whether you’re purchasing your first vacation rental or scaling your portfolio, comps help you buy smart and sell smarter.
Investor Tip: Comps Tell a Story: Learn to Read It
The market shifts quickly. A property that was worth $450K last summer might now fetch $410K due to rate hikes or inventory surges. Comps tell the story of the market, not just the price.
Let’s say two comparable homes recently sold for $275K, but the property you’re eyeing is listed at $320K. With the right comps, you can make a smart, market-aligned offer potentially saving thousands. Talk to your realtor about recent sales of houses comparable to yours. With the help of comps, you can write your story on how much you want to gain from your investment home.
Ready to make smarter real estate moves? Let’s talk about comps, cash flow, and opportunities. Let’s run the numbers together to find hidden deals others miss.