I comp every Memphis house off sold prices only — never list prices, never Zillow guesses.

Here is exactly how I do it. I pull houses that actually sold, recently, in the same ZIP and the same neighborhood — ideally the same few streets. In Memphis that matters. A sale in 38109 does not comp a house in 38117, and a sale across a major road can be a different market.

Then I match the house itself. Same beds, same baths, close on square footage. A 3 bed, 1 bath at 1,100 square feet does not comp clean against a 4 bed, 2 bath at 1,700 square feet. If I am planning a conversion — 2/1 to 3/1, or 3/1 to 4/2, adding roughly 400 to 650 square feet — I comp it as what it will be when I am done, not what it is today.

Last, I adjust for condition, and this is where most people get hurt. If the sold comp was fully renovated and mine needs a full rehab, I back that rehab cost out. No adjusting honestly is how you talk yourself into overpaying. I buy single-family under $100K and I need the finished value to land in that $180K to $265K range, with rent that clears the 1% rule. If the sold comps do not support that, the deal does not work, no matter what the asking price says.

Plain rule: asking prices are opinions. Sold prices are facts.

How are you comping your houses — sold comps only, or are you still looking at list prices?