Comparable Sales
Recent sales of similar properties in the same area, used as the basis for valuing a target property. For a flip, you want comps that match your post-renovation condition, not the as-is state of the subject property.
Comparable sales — comps — are recent sales of similar properties in the same area, used as the evidence base for valuing a target property. They are the foundation under your ARV: an after-repair value is only as reliable as the comps you build it from. Agents, valuers and lenders all work from the same principle, so learning to read comps well is one of the highest-leverage skills in flipping.
The critical rule for a flip is to compare to the right condition. You are estimating what your property will sell for once renovated, so your comps should be similar homes that have already been done up — not tired, unrenovated stock. Pricing a finished flip against as-is comparables is the single most common way flippers understate their ARV and walk away from good deals; leaning only on the top one or two sales overstates it and leads to overpaying.
Choosing and adjusting comps
Good comps share as much as possible with the subject: same suburb (or a genuinely comparable one), similar land size, similar bed and bath count, similar era and finish, and — importantly — recent, ideally within the last few months in a moving market. No two properties are identical, so you adjust: a comp with an extra bathroom or a bigger block is worth more, and you discount accordingly to bring it back to your property. The aim is a defensible range, not a single hopeful number.
In Australia, comparable sales data comes from sources like CoreLogic, PropTrack and Domain, plus on-the-ground knowledge of what actually sold versus what was merely listed. Keep the evidence you used, because it is what justifies your offer and your exit price. Turn your selected comps into a working ARV with the ARV calculator, then carry that figure into a full deal analysis.