How to Pull Apartment Sales Comps to Check Your Exit Value
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Sales comps are recent sales of similar apartment buildings, used to test the price your model assumes at exit. Pull sales from the same submarket, of similar size and age, from the last 12 to 24 months, compare price per unit and cap rate, adjust for differences and treat the result as a range, not a single number. A sponsor who cannot show comps for the exit price has a weak model.
This guide is for sponsors underwriting a deal. It sits next to our guides to the exit cap rate and price per unit.
Where do you find sales data?
| Source | What you get | Limit |
|---|---|---|
| County recorder and assessor | Deed, date, sometimes price | Some states do not disclose price |
| Brokers | Sale details, buyer type, cap rate | Cap rates are often the broker's view |
| Commercial data services | Sale lists, unit counts, price per unit | Paid, may have errors |
| Lenders and appraisers | Comps in their reports | Ask your lender what they will share |
| Listing sites | Asking prices and sold notes | Asking price is not a sale price |
Some states, including Texas and Utah, do not require the sale price to be recorded, so public records may show a sale but not the price. Brokers and data services fill that gap.
Which sales are good comps?
A good comp is close in location, size, age and class. Use this order:
- Same submarket and similar neighborhood. A building across a highway can be a different market.
- Similar unit count. A 30-unit and a 300-unit building attract different buyers.
- Similar year built and condition. A renovated 1985 building is not the same as an unrenovated one.
- Similar class and rent level. See property classes A, B and C.
- Recent. Sales more than two years old reflect another market. Rate and cap rate shifts can make older sales misleading.
Note the buyer type too. A sale to a buyer using seller financing or assuming a loan can be priced differently. See assumable loans.
How do you compare and adjust?
Build a simple table: address, sale date, units, year built, price, price per unit, cap rate, occupancy, notes. Then ask what each difference does to value.
- Newer, better condition: usually worth more per unit.
- Lower rents than the market: the buyer may pay for upside, or discount for risk.
- Higher occupancy at sale: supports a higher price.
- Deferred maintenance: subtract the cost to fix it.
Do not fine-tune with false precision. Comps give a range. If your model assumes a sale price per unit above every recent comp, you are betting on the market, not on the building. Test it with sensitivity analysis.
How do you test your exit assumptions?
Take the net operating income in your model for the exit year, divide it by the exit cap rate and compare the result with comps. Then ask:
- Is your exit price per unit within the range of recent sales?
- Is the exit cap rate at least as high as today's cap rates, including a cushion for age? See cap rates versus the 10-year Treasury.
- Does the exit price still work if cap rates are higher than today's?
Our take
Our view is that investors trust a sponsor more for showing a weak comp honestly than a strong one selectively. Include sales that do not support your case and explain why they differ. A deal that only works with the best three comps will fail the first time the market moves.
Never describe a projected exit price as certain. It is an estimate, and it is not a promise of returns.
Trade-offs and who this is not for
- Paid data is faster but costs money. For a small deal, brokers and records may be enough.
- Few sales in a small market means thin comps. Widen the area carefully and say so.
- Cap rates reported by brokers are not audited.
- This is not an appraisal. A lender's appraiser will do their own.
How DoorRaise fits in
DoorRaise helps sponsors raise equity for apartment buildings with 5+ units from friends and followers who already trust them, under Rule 506(b) or 506(c). We are software, legal document preparation, escrow coordination and verification services. We are not a law firm, broker-dealer, investment adviser, funding portal, bank or escrow agent, and we do not hold investor money: investors wire their money to escrow at Enterprise Bank & Trust, in the deal's name.
DoorRaise gives sponsors a deal page to present the numbers, but the comps and assumptions are yours: show them honestly and let investors read them next to the documents. Flat fees, never a percentage of the raise (see pricing). Create your free sponsor page.
FAQ
What are sales comps in real estate?
Sales comps (comparable sales) are recent sales of similar properties used to estimate what a property is worth.
How far back should I look for apartment comps?
Usually 12 to 24 months. Older sales may reflect a different market, especially after rate changes.
What should I compare on an apartment sales comp?
Price per unit, cap rate, price per square foot, year built, condition, rents, occupancy and buyer type.
Can I use asking prices as comps?
No. Asking prices show what sellers hope for, not what buyers paid.
Sources
- U.S. Census Bureau: Housing Vacancies and Homeownership
- Appraisal Institute
- Fannie Mae Multifamily Guide
This article is general information as of November 2026, not legal, tax or investment advice. Talk to a securities attorney and a CPA about your offering. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.