NEIGHBORHOOD COMPS refers to the specific characteristics -BUDGET, STYLE and FAMILY SIZE- buyers at each neighborhood are likely looking for.
NEIGHBORHOOD COMPS are listed out on the OPEN HOUSE preview as well as the HOUSE DETAILS upon entering OPEN HOUSE. Matching the NEIGHBORHOOD COMPS with your renovations will allow you to get better offer from buyers who likely have similar preferences.
If you're about to do a flooring renovation in a LOW INCOME neighborhood, you should interpret that by using more affordable materials like LAMINATE or VINYL. You may progress to a city where you're in a HIGH INCOME neighborhood in which case you will want to renovate with more expensive materials such as MARBLE floors. If you're about to choose a Staging style, you could tap on the style icon (e.g. Contemporary) at the bottom of the screen to get more information on what Staging styles the typical buyers in this neighborhood prefer. Each skill branch has several Staging styles that you can use for that particular neighborhood.
If you like renovating in a particular city/neighborhood, you'll also find buyers tend to resemble each other and you can make more consistent renovations to get the highest offers. Pay close attention to how your buyer matches up against the NEIGHBORHOOD COMPS as that will be a good indicator at just how high of an OFFER you could have received.
*Also, even though you can't renovate according to buyer's family size, keep in mind that buyers who match up with your house size will tend to bring in higher offers!