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?
@Nathaniel Hughes most likely a transposition error. ARV 290k and sell price 235k. I guess you could buy it for $55000 negative equity.
@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?
@Nathaniel Hughes how are you calculating the ARV?
Selling that far above market is unusual
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.
Thank You Colleen F. Im getting the ARV from Zillow at first glance.
@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.