What does this mean???
6 Replies
Nathaniel Hughes
posted over 1 year ago
What does it mean if a ARV of a home is lower than the asking price?
Example: ARV IS 235K, SELL PRICE IS 290K.
HOW DOES THIS WORK?
Tim Herman
from North Dakota
replied over 1 year ago
@Nathaniel Hughes most likely a transposition error. ARV 290k and sell price 235k. I guess you could buy it for $55000 negative equity.
Nathaniel Hughes
replied over 1 year ago
@Tim Herman, I see this happening a lot, i run across asking prices that far exceeds the ARV. I not clear on how one can sell a property worth more than the value of the home. Is this just a simple case where you can sell your property for whatever price you want no matters of what the ARV is type of thing?
Jason D.
Rental Property Investor from St. Petersburg, Fl
replied over 1 year ago
@Nathaniel Hughes how are you calculating the ARV?
Selling that far above market is unusual
Colleen F.
Investor from Narragansett, Rhode Island
replied over 1 year ago
Don't buy it. Seriously, if this is not an error you may need to move on. However, if lots in the area run higher then the tiny house that is on the lot you may want to look at it for the land value to put an addition for a more substantial house. Where are you getting ARV.
Nathaniel Hughes
replied over 1 year ago
Thank You Colleen F. Im getting the ARV from Zillow at first glance.
Nathaniel Hughes
replied over 1 year ago
@Jason D, Thank you. I dont have the formula for calculating the ARV I need it. I solidly believe I've been receiving just emails about houses for sale that are 60k and more over priced now.