A: A market comparable analysis (comp analysis or CMA) is a structured research process that identifies recently sold comparable properties in a specific Maryland neighborhood to establish a defensible ARV, assess buyer demand levels, evaluate neighborhood market trajectory, and validate that your exit price is achievable in current market conditions. It is not a Zillow estimate. It is an MLS-based research process that pulls actual sale prices, days on market, and condition data for renovated properties similar to your subject property using the same methodology professional appraisers and hard money lenders use.

A: A minimum of 3 comparable sales is required for a credible ARV analysis. Five to six comps are preferred for statistical reliability and lender acceptance. In low-volume Maryland markets (Carroll County, rural Frederick County), getting 5–6 comps may require expanding the radius to 1–1.5 miles or extending the time period to 6 months. In high-volume markets like Baltimore City and suburban Montgomery County, 5–6 recent, tight-radius comps are usually available within 90 days.

A: Comps should be sold within the last 60–90 days ideally. The 2026 ARV best practice is to use sold comps from the last 60 days and to also subtract any seller concessions (closing cost credits) from those sales to find the true net sale price. In low-volume markets where 60-day comps are scarce, extend to 90–180 days maximum and validate against current active listing prices to confirm the market still supports that price level. Never use comps older than 6 months without active listing validation.

A: Days on market (DOM) is the number of days a property was listed before going under contract. In Maryland 2026, average DOM runs 35–46 days statewide. Properties selling in under 14 days indicate strong buyer demand and suggest your ARV may be conservative. Properties taking 60+ days before selling especially with price reductions signal buyer resistance at the listed price point. DOM data is critical for holding cost modeling: if comparable renovated properties in your target market are sitting for 70+ days, your timeline assumption needs to reflect that, and your carrying cost budget needs to account for it.

A: The methodology is the same; the market dynamics differ significantly. Baltimore City requires a 0.25–0.5 mile comp radius due to block-level price variation. Prince George’s County requires neighborhood-level drilling and county-level trends mask major sub-market differences. Montgomery County comps are stable and reliable but acquisition competition is intense. Frederick County is in an appreciating market with 4–6% YoY growth where recent comps may understate current values. Carroll County comps require a wider radius and longer lookback due to lower transaction density. Fortune Homes MD applies county and neighborhood-specific methodology to every comp analysis.

A: Zillow and Redfin are useful for initial screening but are not reliable for deal underwriting. Zillow’s Zestimate is an AVM (automated valuation model) that does not account for renovation conditions; it blends renovated and unrenovated sales. Redfin’s data can lag MLS data by days or weeks. Neither platform provides the seller concession data, accurate condition filtering, or the full DOM analysis that proper comp research requires. For underwriting and hard money loan applications, only MLS-sourced comparable sales data with verified conditions is acceptable.

A: Sold comps show what buyers actually paid the real market value. Active listing comps show what sellers are asking which may or may not be achievable. Active listings are used as a cross-check on sold comps: if renovated properties are currently listed at or above your ARV and are not selling (high DOM, price reductions), today’s market does not support your ARV even if historical sold comps suggest it does. Always cross-validate sold comp ARV against current active listings especially in markets that have softened since your most recent sold comps.

A: Competitive flip inventory is the number of currently active renovated flip properties listed for sale in your target micro-market. When multiple flips are active simultaneously in the same neighborhood, your finished product competes directly with other renovated homes at exit which can extend DOM and force price competition. High competitive flip inventory in a specific Baltimore neighborhood or suburban corridor can push DOM from 25 days to 55+ days and compress sale prices by 3–5%. Fortune Homes MD tracks active flip inventory in your target micro-market as part of every market comparable analysis.

A: On standard cosmetic renovation projects, materials represent approximately 40–60% of total costs with labor consuming the remainder. For specialized trades electrical rewires, plumbing relocations, structural modifications labor commands 60–70% of costs due to the skilled expertise required. General contractors in Maryland charge 20–30% of total project costs for management, or $45–$75 per hour for skilled trade labor. In DC-metro counties, experienced GCs charge at the higher end of this range.

A: Permit requirements depend on scope: structural work, electrical, plumbing, HVAC, and additions each require separate permits in Maryland. Permit fees range from $148–$396 for a bathroom remodel to $2,000–$5,000+ for major structural work. Montgomery County’s FY2024 permit schedule includes impact and inspection fees that add significantly to project soft costs. Fortune Homes MD manages all permitting for every renovation project we execute and includes permit costs and timelines in every line-item estimate.