What Are “Comps,” and What Do You Need to Know About Them in the Current Real Estate Market?

The Lighter Side of Real Estate • January 31, 2023

Every industry has jargon an outsider wouldn’t understand, and probably doesn’t need to know. But real estate is a field where almost every “outsider” needs a bit of insider knowledge in order to successfully buy, sell, or rent a place to live a few times in their lives.

For instance, you could go your entire life without hearing the term “comp” once, but the minute you decide to buy or sell a house you’ll hear agents say it like it’s a word you probably already know. It’s not nuclear physics, so you can probably figure out what they’re talking about, especially in the context they’re bringing it up. But just in case you’ve never heard the term before, “comp” is short for “comparable.”

Okay, but what exactly is a comparable?

Comparables are houses that are currently on the market, under contract, or (most importantly) recently sold. They’re used to compare against a house you’re planning to buy or sell, in order to establish approximately how much it should sell for in the current market. This helps you price it accurately as a seller, and know how much to offer as a buyer.

What makes a good comparable?

Comparables should be chosen in as objective a manner as possible, not to simply justify what you want to hear or think. Just because you want your house to be worth more than the data shows, doesn’t mean you can point to a house that sold for more and say it’s a true comp. Nor can you use a lower priced home as a comp to justify a low-ball offer, if it isn’t truly a good comparable for a house you’re trying to buy.

At times it can be pretty difficult for an agent or an appraiser to find many (or even enough) homes that are truly similar to the house you’re selling or buying, within a recent time frame. But ideally they are looking for houses that have:

  • Similar square footage.
  • Similar lot size.
  • Similar number of beds, baths, and other rooms.
  • Similar condition. (Like how updated or clean it is.)
  • Proximity to the subject property. (Ideally it should be fairly close by.)
  • Similar neighborhood or area.
  • Sold and closed recently. (Within three months is ideal.)

In a perfect world, they’d be able to find three similar homes that are currently on the market, three that are currently under contract, and three that have closed within the past three months, and use all of them in combination to determine how much you should list a house for as a seller, or offer for a house as a buyer.

The problem with comps in the current “shifting” market

Almost everyone in the industry, government, and media seems to agree that the market is “shifting” right now. But it’s difficult to pinpoint what that means exactly, and opinions vary from one person to the next. Considering prices were skyrocketing and at all-time highs in the past few years, you’d think that meant prices are now coming down. What else could shifting mean?!

Well, it doesn’t necessarily mean that prices are going down in your area or price range. It also doesn’t seem to be translating into a buyers’ market everywhere either.

Data and news reports indicate that there are fewer houses selling, and it’s taking longer for them to sell in some areas than it has been in the past few years. But in many areas prices don’t seem to be plummeting, or even falling. In some areas prices are stable or even increasing.

The shift is affecting the market differently from one area to another, and one price range to another, so you can’t go by nationally based data and reports. You need to rely on good local comps to determine the value of a house you’re selling or buying.

But here are a few problems with comps in the current market that you need to be aware of:

  • There often aren’t enough of them. Inventory has been low, and continues to be low, so it can be tough to find 3 houses in each category of a proper analysis. Beyond that, it’s tough to find enough that are similar enough to a subject property.
  • Might need to look back further than 3 months. It’s never ideal to look back beyond three months, but due to the low number of listings and sales, it’s often necessary to do so. Unfortunately, a house that closed within the past three months is often just a sign of what the market was like as much as 5 or 6 months ago, because houses take a month or two to close after being listed even if they go under contract right away. So that data is more proof of what the market was like before or early on in the shift.
  • Won’t see “proof” of values shifting for months. To truly know if prices are going down, it may take a few months of purchases to tell the true tale.

So right now, sellers are often hanging onto “proof” that their house is worth a certain amount based upon sales prices that occurred when prices were at all-time highs. On the other hand, buyers often feel like prices should be coming down, based upon news of the market shifting, and the fact that interest rates going up have affected their buying power, but they don’t necessarily have “proof” to justify lower offers.

In the meantime, while the data catches up with the shift, your best bet is to rely on your agent’s experience and observations in the current market. What have they been seeing happen in your local area and price range? There may not be hard data to pull up yet, but a local agent is a good barometer for what buyers have been offering, how much sellers have been accepting, and how supply and demand has affected those two things in your area.

While comps are useful in determining values and how much to offer or accept for a house, when the market’s shifting you need to rely on your agent’s ability to gauge where the market is currently going before the proof actually appears in the form of comps.

The Takeaway:

“Comps” are short for the real estate term “comparables,” which are basically houses that are similar in size, location, and condition to a house you are selling or buying.
In a shifting market like we’re currently experiencing, it can be difficult to find enough comps, or get a true feel for where the market is going, because it takes time for houses to actually close. So the data can lag a bit.
Your best bet right now is to use comps as a basis, but also rely heavily on your agent’s experience and observations of what is actually happening in your area and price range currently.


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Are Big Investors Really Buying Up All the Homes? Here’s the Truth.

By KCM • January 28, 2026
Are Big Investors Really Buying Up All the Homes? Here’s the Truth. It’s hard to scroll online lately without seeing some version of this claim: “Big investors are buying up all the homes.” And honestly, if you’re a homebuyer who’s lost out on a few offers, that idea probably sounds believable. When homes are expensive and competition is tight, it’s easy to assume giant companies are scooping everything up behind the scenes. But here’s the thing: what people assume is happening and what the data actually shows aren’t always the same. Let’s look at what’s really happening with large institutional investors in today’s housing market – because the numbers tell a much different story than the headlines. The Number Most People Won’t See Online Let’s start with the most important stat. According to John Burns Research & Consulting (JBREC), large institutional investors – those that own 100 or more homes – made up just 1.2% of all home purchases in Q3 of 2025 (see graph below): That’s it. Out of every 100 homes sold, only about 1 went to a large institutional investor. And here’s an important point that often gets missed: that level of investor activity is very much in line with historical norms. It’s not unusually high, and it’s actually well below the recent peak of 3.1% back in 2022 – which itself was still a small share of the overall market. So, while it can feel like big investors are everywhere, nationally, they’re a very small part of overall home sales. Why Investor Activity Gets So Much Attention There are two main reasons this topic gets so much attention: Investor activity isn’t spread evenly. Investors are more active in certain markets, which can make competition feel intense for homebuyers in those areas. As Lance Lambert, Co-Founder of ResiClub, explains:“On a national level, “large investors”—those owning at least 100 single-family homes—only own around 1% of total single-family housing stock. That said, in a handful of regional housing markets, institutional and large single-family landlords have a much larger presence. ” Investor is a broad term. Part of what makes the share of purchases bought by investors sound so big is because many headlines lump large Wall Street institutions together with small, local investors (like your neighbor who owns one or two rental homes). But those are very different buyers.In reality, most investors are small, local owners, not massive corporations. And when all investors get grouped together in the headlines as a single stat, it inflates the number and makes it seem like big institutions are dominating the market (even though they’re not). Yes, big investors exist. Yes, they buy homes. But nationally, they’re responsible for a very small share of total purchases – far smaller than most people assume. The bigger challenges around affordability have much more to do with supply, demand, and years of underbuilding than with large institutions competing against everyday buyers. That’s why it’s so important to separate noise from reality, especially if you’re trying to decide if now is the right time to move. Bottom Line If you want to talk through what investor activity actually looks like in our local market, and how it impacts your options (or doesn’t), let’s connect. Sometimes a little context makes all the difference.

Why January Is the Best Time to Kickstart Your 2026 Home Search

By Inner Circle • January 22, 2026
It’s a new year, and if buying a home in 2026 is on your mind, there’s one simple piece of advice worth hearing first: get started now. Not in March. Not in spring. Not “when the weather gets better.” Now. Why? For starters, buying a home takes time. A recent Realtor.com article suggests getting started at least six months before you plan to close. That doesn’t mean starting in January automatically puts you on track for a June closing. In fact, if you get started now, there’s a good chance you could be in a home much sooner than that. On the flip side, even if you don’t plan to move until later in the year, beginning the process early still puts you in a far stronger position when you’re ready to make offers. You’re almost always better off starting sooner rather than later. There’s a lot involved beyond simply finding a house you like. Financial preparation, getting pre-approved for a mortgage, understanding what you can truly afford, getting a handle on the existing inventory, touring homes, writing offers, negotiating terms, and finally closing — all of that takes time. And that’s before factoring in local competition and inventory. But as we head into this new year, there’s another reason starting early matters even more — and it has everything to do with what’s happening in the market right now… It’s Finally a Buyer’s Market in Many Areas… But It Might Not Last One of the biggest reasons to begin in January is where the market stands right now. In many areas, conditions are unusually favorable for buyers — and that’s not something to assume will stick around. According to recent housing market data , there were roughly 37% more sellers than buyers across the U.S. in November 2025, one of the largest gaps on record going back to 2013. A gap that large can give buyers more negotiating power. It often leads to more options, more time to consider choices, and greater leverage when it comes to price, terms, and requests for seller concessions. But that gap can easily close. Many buyers put off looking for a home until the spring market “officially” begins. That’s in quotation marks because there really is no official date for when the spring market begins. But at some point in the next few months, there will likely be a surge of buyers entering the market. When that happens, competition will increase and many of the advantages buyers enjoy early in the year will likely begin to shrink. Buyers who wait may find themselves facing more multiple-offer situations, tighter negotiations, and less room to ask for concessions. Getting started in January doesn’t just give you a head start — it gives you a shot at taking advantage of conditions that may look very different just a few months from now. The First Thing to Do After the First of the Year If you’re even just thinking about buying a home in 2026, the most productive first step after the new year isn’t scrolling listings or heading out to open houses — it’s having a conversation with a local real estate agent. National headlines are helpful for understanding broad trends, but real estate is extremely local. Conditions can vary dramatically from one city to the next, from one neighborhood to another, and even from one price range to another within the same town. An agent can walk you through what inventory looks like right now, how competitive buyers are in your target price range, and whether sellers are negotiating or still holding firm. They can also help you come up with a timeline and strategy based upon your personal situation and the current market conditions. The Takeaway: Buying a home almost always takes longer than people expect. That’s why many experts recommend starting the process at least six months before you plan to move. That doesn’t mean it has to take that long — plenty of buyers find and close on a home much sooner. But it does mean that giving yourself time is rarely a bad idea. Starting as early in the year as possible is always smart, but starting early in 2026 may be even smarter. With roughly 37% more sellers than buyers — the largest gap we’ve seen since 2013 — today’s market is offering buyers opportunities that may not last once more people jump in later this year. Waiting until spring could mean more competition and fewer advantages than buyers see right now. If you’re even thinking about buying in 2026, getting the ball rolling in January can put you in a much stronger position. And the best first step isn’t browsing listings — it’s talking with a local real estate agent who can explain what’s happening in your market, help you set realistic.

Leased Solar Panels Could Impact Your Buyer’s Ability to Get a Mortgage

By Inner Circle • January 20, 2026
Most homeowners who consider adding solar panels are thinking about a few common goals: They’re environmentally conscious and want to reduce their carbon footprint. They’re looking to save on rising utility costs. They believe solar will increase the value of their home when they sell it. But how they think about paying for the installation is an entirely different conversation. If you have enough cash saved up, are willing to take out a home improvement or solar loan, or have access to other financing options (HELOCs, personal loans, etc.), you can buy and own the system outright. For many homeowners, though, that upfront cost feels daunting — which is exactly why leasing a solar system has become so popular. Solar companies often make leased systems sound almost irresistible: little or no money down, monthly payments that are offset by anticipated savings on your electric bill, and assurances that a future buyer will assume the lease with ease. Many sales pitches even imply that simply having solar is a selling point and adds value to the home. But whether you already took a solar company up on a lease offer, or are considering doing so, you may want to think about how that could impact whether or not your future buyer can buy your house when you go to sell. Some Lenders Will Treat Leased Solar Panels Like Debt One of the more common concerns people raise about how solar panels will impact the future resale of a home is in terms of aesthetics. Some buyers simply don’t like how they look and won’t consider a home with them, which can obviously impact the number of buyers your home will appeal to, and potentially the selling price. However, a leased system can create another issue that goes beyond preference: it can affect whether they can buy your home at all. When a buyer applies for a mortgage, lenders look closely at their financial obligations. Depending on the situation, some mortgage underwriters will treat a leased solar system like a monthly debt payment because the buyer must take over that contract as part of buying the house. So even if your future buyer loves the fact that you have solar panels installed, the lease payments can still count against their debt-to-income ratio (DTI) — one of the core metrics lenders use to determine how much a buyer can borrow. If the lease payment pushes their DTI too high, they might not qualify for the mortgage amount they need, or in some cases, prevent them from qualifying at all. Some lenders and loan programs are more flexible than others, but there’s always a risk that a lease payment can be counted against the buyer’s ability to qualify for the home price you want in certain underwriting scenarios. It’s also worth noting that appraisers typically don’t assign value to leased equipment the way they do for owned solar. If a buyer doesn’t own the panels, an appraiser generally won’t add dollar value to the home based on their presence alone, which may impact the value you and your buyer agreed upon, forcing price renegotiations. What to Do Before Installing a Leased Solar Panel System If you’re still in the decision-making stage — or even if you already have solar installed — and you’re thinking about the resale of your home, it’s worth getting informed before moving forward. One helpful resource many homeowners aren’t aware of is this consumer advisory from the U.S. Department of the Treasury that outlines what to consider before installing solar panels. It covers financing options, ownership vs. third-party arrangements, tax credits, and — importantly — how solar systems can interact with loans and future home sales. It’s a neutral, plain-English guide designed to help homeowners understand the long-term implications of their choices, not just the short-term savings pitch. Reading through guidance like that can help you ask better questions, spot potential red flags in contracts, and understand how different solar arrangements may affect you later, but speaking with a local real estate agent can also be extremely helpful. An agent doesn’t sell solar, and they don’t benefit one way or another from how you finance it — which makes their perspective especially useful. They can help you understand how leased systems are typically received by buyers and lenders in your market, whether similar homes with solar have faced financing hurdles, and what impact (if any) a lease might have on your buyer pool or sale timeline. Real estate is hyper-local. What works seamlessly in one neighborhood or price range may create friction in another. Before installing solar — or before listing a home with a leased system already in place — having an agent weigh in can help you avoid surprises and make decisions that align with both your lifestyle goals and future resale plans. Sometimes, a quick conversation upfront can save you from a much bigger headache later. The Takeaway: Leasing a solar panel system often sounds easier and more appealing than paying outright for it to be installed. However, when you lease, lenders might treat that monthly obligation as debt, which can affect a future buyer’s ability to qualify. If resale matters — whether next year or years down the road — understand your lease terms, explore buy-out or ownership options, and consult with a local agent before installing or listing.
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