After Repair value

8 Replies

Peace everyone does the ARV increase based on if the property is occupied? Help please just trying to get a better understanding. Thank you

Need more information. It depends Is it rented or not. Depend on if your trying to sell it to an investor or a homeowner. 

Medium mogul logo web smallPeter MacKercher, Mogul Realty | [email protected] | 314.210.4414 | http://stlmogul.com | MO Agent # 2010004223

The ARV should be the same whether the property is occupied or not. It may be more desirable to an investor if there is an tenant in place, but the ARV should be the same since it is based on market value of the property.

@ Derek Faler "ARV should be the same since it is based on market value of the property."

Not realy. If you rented the property it would have to apprised that property based on income approach as well. And if your rented it lowlow it would return a low appraised value. If you rented it high it could help the appraised value. 

No investor in there right mind would buy a house for $500k that was rented at 500 for 1 year. 

Medium mogul logo web smallPeter MacKercher, Mogul Realty | [email protected] | 314.210.4414 | http://stlmogul.com | MO Agent # 2010004223

If the property is a residential property (1-4 unit). Whether it's occupied or not shouldn't place much weight on the ARV. This is mainly based on the recently sold comps in the area and adjustments based on your property and the comps.

Check out this interview with own of our moderators and luxury house flipper Will Barnard. He goes into ARV in detail:

thank you all gentlemen here is the scenario: seller was selling a residential property for 36k or bo. After I ran the numbers/comps I came up wit a 30k arv so the most I could offer was 11k. When I mentioned this to the seller/investor said he knows but he based his asking price (60k ARV) as if the home was occupied. Did I miss something?

Originally posted by @Desmond Guy :

thank you all gentlemen here is the scenario: seller was selling a residential property for 36k or bo. After I ran the numbers/comps I came up wit a 30k arv so the most I could offer was 11k. When I mentioned this to the seller/investor said he knows but he based his asking price (60k ARV) as if the home was occupied. Did I miss something?

 Yes.  The seller is looking for a newbie buyer who doesn't know any better!  If your carefully calculated figure is $11k, why offer more?  Know when to walk away.  Cheers...

thank you Mr. Coombs I appreciate you taking the time

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