21 Questions on Comparable Real Estate Assets via Multifamily Insight Blog

When people look for comparable assets (“comps”) the sole focal point is often price. Price-price-price. People look for comparable sales data that proves or supports the value of a similar property. As a seller of real estate this makes perfect sense as you about to exit the transaction. As a buyer the price-price-price perspective is very short-sighted.

Finding comps begins with a review of comparable assets in the same submarket as the asset under consideration. It is imperative to not stray from the submarket in question as this is where the subject asset is competing for customers.

It is important that someone from your team (or you) go see, in person, on foot, these comparable assets. NO driving by. NO pulling down photos from the web. Go see, go touch the competition. You’ve come this far, after all. If your acquisition candidate has all new stainless steel appliances and the competitors believe “avocado green” is still in fashion… there’s only one way to find out- go see.

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