Quick Question ARV -vs- Comps

[Mark Davis]

May question is simple I am sure for many of you seasoned investors so I apologize if this sounds stupid or obvious to you. I have noticed that many wholesalers will provide comps for an area or house and then have an ARV that is significantly higher than the comps. At first I thought that the comps must of been houses that were as distressed as the house I was looking at but when I went and pulled my own comps for that area I could see that they were not that the comps were just the average or even the top prices for the area. It is my understanding that no matter how much I put into a house the house can only sell for what the area will bear and comps are the best indicator for this? So my question is; wouldn't the max for an ARV be what that market will bear for that property and should be close to what the max comps are for that area?

Thank you for your help!!