Quick answer: To comp a wholesale deal, pick three to six renovated homes that sold within six months and about half a mile, matched on size, bedrooms, age and style. Adjust for differences, discard outliers and present a conservative ARV range with your reasoning. DispoKey's buyer network responds fastest to deals with honest comps, and those deals match within 72 hours most often.
Cash buyers check every ARV you send them. They have their own agents, their own data and their own memory of the last wholesaler who promised $280,000 on a street that tops out at $230,000. Send one inflated ARV and your next three deals get ignored. Send honest, well-supported comps and buyers start opening your emails first.
Step 1: Choose the right comparables
A comparable is a recently sold home a buyer could reasonably have bought instead. The tighter the match, the more believable the ARV.
- Sold, not listed: active and pending listings show hopes, not values.
- Recent: ideally within three to six months.
- Close: often within half a mile in suburbs, tighter in cities, and never across a major road, school boundary or neighborhood line that changes value.
- Similar: square footage within about 20%, same bedroom count, similar age, style and lot.
- Renovated condition: for ARV, use homes that sold in the condition the rehab will create.
Step 2: Adjust for differences
Appraisers adjust comparables for differences in features; Fannie Mae's appraisal guidance shows how structured those adjustments are. You do not need an appraiser's precision, but you do need to show your thinking.
| Difference vs subject | Adjust comp price (example direction) | Note |
|---|---|---|
| Comp is larger | Down, using a local price per sq ft for the difference | Do not apply full price per sq ft to small differences |
| Comp has extra bedroom or bath | Down | Value varies by market |
| Comp has garage, subject does not | Down | Garage value varies widely |
| Comp sold 5 months ago in a rising market | Up slightly | Use a local price index trend |
| Comp backs to a busy road, subject does not | Up | Location adjustments are judgment calls; explain them |
| Comp in flood zone, subject not | Up | Flood insurance affects buyer demand |
Step 3: Set a range, not a single number
After adjusting, drop any outlier that sold far above or below the others without a clear reason. Your ARV is a range around the middle of the adjusted comparables. Lead with the middle, not the top. If you have only two good comparables, say so; buyers respect honesty more than false precision.
Check the market trend
The FHFA House Price Index shows how prices are moving in metro areas and states. If prices have been flat or falling, older comparables may overstate value. Mention the trend in your deal sheet.
Worked example (illustrative numbers)
Subject: 1,300 sq ft, 3 bed, 1.5 bath, 1962 ranch, no garage. These are labeled example figures.
- Comp A: 1,350 sq ft, 3/2, garage, sold 2 months ago at $236,000. Adjust down $4,000 for the half bath and down $6,000 for the garage: $226,000.
- Comp B: 1,280 sq ft, 3/1.5, no garage, sold 4 months ago at $221,000. Small time adjustment up $2,000: $223,000.
- Comp C: 1,420 sq ft, 3/2, sold 1 month ago at $248,000. Adjust down for size ($8,000) and bath ($4,000): $236,000.
- Comp D: 1,300 sq ft, 3/1, sold 3 months ago at $199,000 as a dated estate sale. Not renovated: discard.
Adjusted range: $223,000 to $236,000. Present an ARV of about $228,000 with the range shown. Run your offer math in the wholesale calculator using that number, not the top comparable.
Step 4: Present comps buyers can verify
- List each comparable with address, sale date, price, size, bedrooms and baths.
- Show your adjustments and the reason for each.
- Note which comparables you discarded and why.
- Include the rehab estimate and photos so buyers can match condition to comps.
Common mistakes that cost buyer trust
- Using the single highest sale on the street.
- Comparing a dated three-bedroom to a new-build four-bedroom.
- Ignoring flood zones, busy roads or rail lines.
- Copying an automated estimate without checking condition.
- Lowballing rehab to make the spread look bigger.
Comping in rural or thin markets
Some areas simply do not have six renovated sales in the last six months. When comparables are thin, widen your search in this order: extend the time window to 12 months and adjust for the price trend, then widen the radius within the same school district or township, then relax size or age matching while adjusting more carefully. Say clearly in your deal sheet that comparables are limited and explain each choice. Buyers in rural markets often know the area well and will respect a careful, transparent range far more than an overconfident single number.
Comp the as-is value too
Buyers think about two values: what the house will be worth after repairs and what it is worth today in its current condition. Pull two or three sales of unrenovated homes, estate sales, investor purchases and homes listed as needing work, to show the as-is range. When your contract price sits sensibly below that as-is range and your ARV is conservative, buyers can see the spread is real.
Update comps if your deal sits more than a couple of weeks. A new sale on the street can strengthen your ARV or undercut it, and buyers will find it either way.
When DispoKey may not be your best option
If your buyer for this deal already agreed to your price after seeing your comps, close directly and keep 100%. DispoKey helps most when you need a wider buyer pool fast. Submit the deal with your comps; we match off-market contracts within 72 hours, with a 60/40 split in your favor.
Key takeaways
- Use sold, recent, close and similar comparables in renovated condition.
- Adjust for size, features, time and location, and explain why.
- Present a conservative range, not your best-case number.
- Discard outliers openly.
- Honest comps get your deals opened first.
Ready to put solid comps in front of buyers? Submit your deal for a 72-hour buyer match, explore the wholesaler hub, or read how to use your inspection period.
