Market comp analysis benchmarks a replacement property's rental rates, sale price per unit or per square foot, and cap rate against recently closed comparable transactions. This ensures you are paying a price supported by actual market evidence rather than relying on a broker's opinion of value, particularly important when exchange proceeds must be committed within the 180-day statutory window.
We pull comparable sales and lease transactions from CoStar, county records, and our proprietary deal database, adjusting for location, condition, tenant quality, and lease structure. The resulting comp set is presented in a clear summary that supports or challenges the listed price, giving you leverage in negotiations even under a compressed timeline.
Overpaying for a replacement property negates a meaningful share of the tax benefit the exchange was designed to capture. Comp-supported pricing keeps your basis accurate and your returns intact.
Asset focus
Challenges
- Relying on a broker's opinion of value rather than closed comparable data can lead to overpaying, which negates the tax benefit of the exchange.
- Comp sets pulled without adjusting for location, condition, and lease structure produce misleading price benchmarks.
- Cap rate compression varies significantly by submarket and property type, and stale comp data misrepresents current pricing.
- Under a tight identification and closing timeline, investors have limited time to build a defensible comp set before making an offer.
What we deliver
- A comparable sale and lease data set pulled from CoStar, county records, and our proprietary deal database.
- Adjustments for location, condition, tenant quality, and lease structure applied to each comp.
- A written summary that supports or challenges the listed price for negotiation purposes.
- A cap rate benchmark specific to your target Austin submarket and property type.
Related services
Find replacement properties for your 1031 exchange
Understand how federal capital gains tax applies when you sell a rental
Understand the stepped up basis rule for inherited real estate
Understand the structures investors use to earn passive income from real estate
FAQ
What sources do you pull comparable data from?
CoStar, county records, and our proprietary deal database, adjusted for location, condition, tenant quality, and lease structure so the comp set is genuinely comparable, not just similarly sized.
How does comp analysis give me negotiating leverage?
A clear, data-supported summary showing where the asking price stands relative to recent closed transactions gives you a factual basis to negotiate rather than relying on the listing broker's opinion of value.
Can this analysis be done quickly enough for a compressed timeline?
Yes. We prioritize comp analysis for properties still under active consideration so it can inform your offer within the 45-day identification and 180-day closing windows.
What happens if the comps do not support the listed price?
We present the gap clearly so you can negotiate a lower price, request concessions, or move on to another candidate before committing exchange proceeds to an overpriced acquisition.
Do you benchmark cap rate as well as price?
Yes. Cap rate benchmarking specific to the property type and Austin submarket is part of the comp set, since price per unit or per square foot alone does not capture income-adjusted value.
Why does overpaying matter more in a 1031 exchange?
Overpaying with exchange proceeds directly erodes the equity you deferred tax to preserve, which negates a meaningful share of the benefit the exchange was designed to capture.