How to accurately make adjustments to comparables to determine ARV
Hello BP,
I was looking at some real ways to practice estimating ARV and repair costs and I thought what better way than to find below market priced listings and use them for my analysis. In the process, I stumbled upon a property in Mission Viejo. Here's the link: https://www.redfin.com/CA/Mission-Viejo/25711-Po-Ave-92691/home/4842630
One difficulty I have is determining by what amount I should make adjustments to comparables. I looked through the appraisal report for my home and noticed for example that difference in square footage didn't make a lot of difference. Same for the number of bedrooms. However, the number of bathrooms did make a big difference.
I would think the amount by which adjustments are made is partly subjective and influenced greatly by the neighborhood in which the property is located. So I cannot find an accurate way to quantitatively assess the differences in the comparables. In spite of this, I gave it a shot and came up with an estimated ARV for the subject property. Link to the table:
The numbers that I used to make adjustments are in no way scientific or derived from equations, they are ballpark numbers I got using my home's appraisal report as reference.
I'd appreciate any feedback and/or suggestions on how to better estimate the ARV using comps and adjustments to comps.
Next up, I'm going to walk and take lots of pictures of this property to practice estimating repair costs, using the book by @J Scott as reference. Will share that too so that I can get some very needed advice from great BP mentors! =)
Thanks!