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  • Writer's pictureChris Goff

How to Run Comparable Sales for Real Estate Investors

For real estate investors, understanding the true value of a property is paramount. Whether you’re flipping houses or investing in rental properties, having an accurate valuation is key to making informed investment decisions. This is where comparable sales analysis (also known as "comps") comes into play.

What is Comparable Sales Analysis?

Comparable sales analysis involves evaluating recent sales of similar properties in the same area to estimate the value of a property you're interested in. This method gives you a benchmark for what buyers are willing to pay in the current market, ensuring that you neither overpay for a property nor undervalue your investment potential.

Why is Comparable Sales Analysis Important for Real Estate Investors?

  • Informed Decision-Making: Comps empower you to make educated offers, avoiding overvaluation or undervaluation.

  • Market Insight: Understanding recent sales trends helps you gauge the market’s health and forecast future performance.

  • Negotiation Leverage: Accurate property valuation strengthens your position during price negotiations.

  • Risk Mitigation: By basing your investment on solid data, you reduce the risk of financial loss.

Steps to Run Comparable Sales Analysis

1. Gather Data

Start by collecting data on recent sales in the same area as your target property. Aim to find properties that are similar in terms of size, age, condition, and features.

Key Data Points to Collect:

  • Sale price

  • Property size (square footage)

  • Number of bedrooms and bathrooms

  • Lot size

  • Year built

  • Property condition

  • Location specifics (proximity to amenities, schools, etc.)

2. Filter and Select Comparables

Once you have a pool of potential comps, filter them based on criteria that closely match your subject property. The more similar the properties, the more accurate your analysis will be.

3. Adjust for Differences

Even among similar properties, there will be differences. Adjust the value of your comps to account for these variations. For example:

  • Size Adjustments: Larger properties should be valued higher, and smaller ones lower.

  • Feature Adjustments: Properties with additional features (e.g., a swimming pool, renovated kitchen) should be adjusted upward.

  • Condition Adjustments: Well-maintained properties should have a higher valuation compared to those needing significant repairs.

4. Calculate the Average Price per Square Foot

Determine the average sale price per square foot from your adjusted comps. Multiply this figure by the square footage of your target property to get a baseline valuation.

5. Analyze the Trends

Look beyond individual sales and analyze overall trends. Are prices rising or falling? Is there a high demand for properties like yours? This broader market context can influence your final valuation.

Using REIPro for Comparable Sales Analysis

REIPro stands out by offering nationwide comps that include MLS and For Sale By Owner data, providing a comprehensive picture of the market. Here’s how REIPro can simplify your comparable sales analysis:

  • Comprehensive Data Access: Access MLS and FSBO data from across the nation, enabling you to find the most accurate and up-to-date comps.

  • User-Friendly Interface: Easily filter and compare properties using REIPro’s intuitive tools.

  • Detailed Reports: Generate detailed reports that incorporate all essential data points and adjustments, giving you a clear and professional valuation.

  • Market Insights: Leverage REIPro’s tools to analyze broader market trends and make informed investment decisions.


Running a comparable sales analysis is a critical skill for any real estate investor. By following the steps outlined above and utilizing tools like REIPro, you can confidently assess property values, ensuring you make sound investment decisions. Remember, the more accurate your comps, the better positioned you are to succeed in the competitive market of real estate investment.

Start leveraging the power of accurate property valuation today. Sign up for REIPro and take your real estate investment strategy to the next level.


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