In this episode of The Deal Vault, Greg, Nate, and Sarah open with a lighthearted detour into ASMR before asking a question every real estate investor should care about: are comps a friend or a foe? They break down what a comparable sale is, how appraisers choose comps for the Fannie Mae 1004 appraisal report, and why distance, age, size, condition, and sale date all change how much weight a comp carries.

From there they dig into after repair value, where an appraiser has to picture a property that doesn't exist yet, and share practical, mostly free steps investors can take to check comps on their own before a loan ever starts. They also cover how the LoanBidz team supports valuation disputes and close with a hot take on why investors need to care about the value of the asset they're buying.

You'll Learn How To:

• Explain what a comparable sale is and why it supports your property's value
• Tell the difference between a true comp and a listing or a mismatched property
• Choose comps using distance, sale date, size, condition, and neighborhood boundaries
• Check comps yourself with free tools like Zillow's sold filter and Google Maps before applying for a loan
• Prepare for an after repair value appraisal with a solid scope of work and similar finishes

Who This Episode Is For:

• Fix and flip investors who rely on after repair value to size their loans
• Rental investors who want to know how their property will be valued
• New investors learning how appraisals and desktop valuations work
• Borrowers who have been surprised by a lower valuation than they expected
• Investors deciding whether to use software tools or lean on their lender for help

Episode Highlights

[0:03] –Greg welcomes listeners to the Vault and introduces Nate and Sarah
[0:25] –A lighthearted opener about ASMR videos, kids, and YouTube rules at home
[4:22] –The topic is set: comps, friend or foe, and what a comparable sale actually is
[5:07] –Why a comp backs up what you think a property is worth before or after repairs
[5:59] –How appraisers use 3 to 6 comps on the Fannie Mae 1004 report, ideally within a mile or two
[7:07] –Why unique properties, like a duplex in a single family neighborhood, are hard to comp
[8:48] –Why crossing a major thoroughfare can put a nearby sale in a different neighborhood
[10:08] –How age, size, and sale date affect comp quality, and why the most recent sale wins
[11:20] –Who picks the comps: appraisers, or desktop analysis for many rehab loans
[14:42] –Why after repair value is harder to prove than a rental value
[16:20] –What is not a comp: a listing is not a sale, and finished basement square footage is not above grade
[17:54] –Why larger adjustments make a weaker comp, and why a slightly older comp can be better
[19:09] –Why your confidence in the value only matters if the next buyer and their lender agree
[20:25] –Free steps: filter Zillow to sold, search the last six months, match size, condition, and distance
[25:18] –Why a realtor's CMA may not be enough and how to ask for sold data and draw your own radius
[28:01] –Affordable software tools for pulling comps and checking rehab condition and after repair value
[29:50] –How the lending team supports reconsideration of value requests and escalates when a case is strong
[31:40] –The hot take: if you're unwilling to learn how value is set, you shouldn't be in real estate
[34:33] –Closing thoughts on finding the rules everyone plays by and why investors should care about comps

Key Takeaways

1. A comp has to be a closed sale, so a listing next door never counts.
2. The strongest comps are close by, similar in size, age, and condition, and sold in the last six months.
3. Crossing a major road or a neighborhood line can make a nearby sale a poor comp.
4. After repair value is more subjective because the appraiser has to imagine a finished property from your scope of work.
5. A few minutes checking sold comps yourself sets realistic expectations and makes any value dispute stronger.

Connect & Learn More

👉 LoanBidz: https://loanbidz.com
👉 PropStream: https://www.propstream.com

Call to Action

If you're ready to fund your next deal with a team that understands comps and will go to bat on your valuation, reach out to LoanBidz. Until next time, keep building. Keep investing.