Comping in a Small Market · Small Market REI

Comping in a Small Market

A cheap house in a small town isn’t automatically a deal.

Before I worry about what I can buy it for, I want to know what’s actually selling around it.

I start on the same street or one street over. Recent sales, similar houses, similar condition. Then I expand from there if I need to.

In a small market, your comps might be more spread out. That’s okay, but a house three miles away could be in a completely different market.

A few similar sales can help you build a realistic range. One nice house that sold eight miles away gives you a lot less to go on.

And if you’re using renovated houses to justify your resale price, make sure your budget gets yours to that same condition.

Don’t pick the highest sale and build your whole deal around it. Look for a pattern you can explain.

The fewer solid comps you have, the more careful you need to be with your numbers.

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Comping in a Small Market

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