Pulling Comps for a Flip: Build an ARV That Survives the Appraisal

Comparable sales, or comps, are recent sales of homes like yours. On a flip, they set your after-repair value (ARV). Your ARV sets your offer, your profit and your loan amount. Weak comps lead to overpaying, a short appraisal and a smaller exit.

Get good data

• MLS (multiple listing service): the most detailed and accurate. If you don't have access, an investor-friendly agent can pull it.
• County records: confirm sale prices and dates.
• Public listing sites: useful for photos and a quick look, but double-check the details.
• Paid investor data tools: handy for screening many properties fast.

Use closed sales. Active listings show what sellers hope for. Pending sales can help as a signal, but the price isn't confirmed yet.

Filter hard

Start narrow and widen only if you have to:

• Distance: as close as possible, ideally the same neighborhood and school zone, often within a half mile
• Time: closed within roughly the past 3 to 6 months, longer only in slow areas
• Size: within roughly 10% to 20% of your finished square footage
• Type and style: single-family to single-family, similar age and build
• Condition: renovated homes that match your planned finish level

Leave out foreclosures, short sales and family transfers unless you adjust for them. Watch for barriers that split values, like a highway, a rail line or a school boundary.

Adjust honestly

No comp is a perfect match. Adjust for the meaningful differences: square footage, bedroom and bathroom count, garage, lot size, pool, and location within the neighborhood. Base each adjustment on what your local market actually pays, and keep it conservative.

Example, round numbers only: Your finished house will be 1,600 square feet with 3 bedrooms and 2 baths. You find three renovated sales nearby:

• Comp A: 1,550 sq ft, 3/2, sold $310,000
• Comp B: 1,700 sq ft, 3/2, sold $325,000
• Comp C: 1,600 sq ft, 3/1, sold $295,000

Adjust B down a bit for size and C up for the extra bath you're adding, and your range lands around $305,000 to $315,000. An ARV of $310,000 is defensible. Using only Comp B at $325,000 is wishful.

Present a balanced set

Lenders and appraisers usually want at least three solid comps. Choose the three to five closest matches on location, date and condition. Make sure at least one sold below your ARV, so it's clear you didn't cherry-pick. Add photos and a short note on each adjustment. A clean comp package speeds up underwriting and sets expectations for the appraisal.

What this means for you

The goal of comps is not to find the highest number. It's to prove what a buyer will really pay for your finished house. Filter tightly, adjust honestly, show the full range, and your ARV will hold up when it counts.

RSC Fix & Flip loans go up to 75% of ARV, so a realistic ARV matters to your loan amount as much as to your profit.

Have your comps ready? Send the deal to RSC Private Lending for a term sheet in 24 hours. Subject to underwriting.