Today we are going to discuss how to comp properties in a declining market. When the market shifts, your strategy needs to shift too. In a flat or declining market, you can’t just rely on sales from the past six months anymore. Instead, start by looking at what’s on the market right now. Those active listings are your real competition, and they’ll shape what your property will be worth when it’s time to sell or refinance.

Look for Real-Time Clues

For example, if most listings in your area are dropping prices or offering incentives like paying closing costs, that’s a sign values are sliding. You’ll want to factor that in before you buy. Also, make sure your comps match your property closely, same subdivision, similar size, beds, baths, and updates. Even a home one street over could be in a different neighborhood with higher values.

Use Fresh Data and Plan Ahead

Another key tip is to focus on fresh data. Use comps that are no more than three months old, and better yet, study what’s currently listed. Then, run your numbers 5–10% lower to prepare for possible price drops before your project finishes.

For instance, a property valued at $300,000 today might only sell for $270,000 in a few months if the market dips. Planning for that now helps protect your profits later.

Be Competitive in a Buyer’s Market

Finally, take note of price per square foot and the condition of nearby homes. In a buyer’s market, you need to stand out by offering equal or better value.

The Bottom Line

In short, stay flexible, pay attention to trends, and always use the newest data. That’s how you’ll keep clarity, certainty, and profit in a shifting market.

Watch our most recent video today to find out more about: How to comp properties in a declining market.