Window Dressing in Broker Packages: The Comp Game Many seller packages are dressed up like department store mannequins— pretty on paper, but you’ve got to look underneath. Sellers use a dozen tricks to dress up deals. Rather than cram them all into one post, I’m breaking them out—bite by bite. Let’s start with the first tactic you’ll see in many broker pitches : The Comps. The Game We Play When sellers want to justify pricing, they cherry-pick the best comps they can find. Higher rents, newer builds, nicer areas. From their side? Makes sense. From yours? It’s dangerous. Too often, these comps share nothing with the actual property—except the ZIP code. It’s like comparing a 1999 Toyota Corolla to a 2022 Mercedes. Same number of doors. Totally different product. The Classic Setup Highlight a nearby Class A building Bigger units Premium finishes Top-shelf amenities Better tenant base Then… Use that to support pricing on a tired 1990s B-class value-add deal. It looks clean in the comp tables. But once you dig in—reality bites. Smart Buyers Know They don’t trust paper. They verify. They ask: Is the vintage and layout a match? 600 sq ft 1-beds don’t compete with 800 sq ft 1-bed luxury units Who’s the tenant? Workforce renters ≠ grad students ≠ tech transplants. What’s the real housing cost? (Look at Utilities) Story time: We looked at a deal in Jonesboro, GA. Broker showed comps $125 higher than the subject property. Looked like a steal. But the subject had gas heat + hot water paid by residents. The comps were all electric. That’s $100/mo extra for gas Residents aren’t dumb—they do that math. The “$125 discount” turned into a $25 discount. Are those rents even real? Asking rent isn’t actual rent. You’ve got to strip out concessions. Example: 1 months free on a 12-month lease? That $1,600/month unit is effectively $1,467 Gift Card Mojo New lease-up deal. Rents looked high, but it’s new—so no surprise. Asked about concessions. “None,” they said. I had my assistant shop the comp. They were giving out $500 gift cards to tour and sign. Trick? They booked it as a capital expense—so it skipped the T-12. Seen it before. Not a “concession” on paper, but tenants know they got paid. What’s the leasing velocity? A comp might show high rent… Because it’s 60% leased after 90 days. That’s not a comp. That’s a startup. Did you walk it?(Not just drive it, but walk it) Those Rent Comp Studies don’t show: Builder-grade finishes Cheap vinyl Thin windows Sellers are supposed to make their deal look great. Your job? Cut through the costume. Nail down the real comps first— everything else builds from that foundation. If people are interested, I’ll break down each trick used by sellers to get people to buy their real estate deals. P.S. Companies like HelloData have made this comp selection easier in recent times.