After Repair Value of property

4 Replies

Question about ARV if a much larger house is in a spot around a bunch of smaller houses that are worth around 50k but there are houses in the area less than a mile away around the same size that sold for 120-150k. Would I get my number from the 120-150 range or would it be lower because of the location of the house?

How dense is the area? If you are in a downtown area you may want to stick with the comps within a quarter mile if you can, if you are in a more rural area you can go out a half mile or so to make sure you know you're getting the same value. Also, I would make sure your comps sqft is within 20% of your finished house. 

Being the biggest house on the block can sometimes be bad because your bogged down by the prices of the smaller houses surrounding yours. 

Originally posted by @Ben Stevenson :

Ideally the closer the comp, the better... but as long as the houses are within the same school district, you're good. The condition of the neighbouring houses will be a factor too.

They are all within the same school district this house just has other houses near that aren't even half the size of it. The neighboring houses aren't in bad condition either they're just smaller.

Originally posted by @Sam Flannery :

How dense is the area? If you are in a downtown area you may want to stick with the comps within a quarter mile if you can, if you are in a more rural area you can go out a half mile or so to make sure you know you're getting the same value. Also, I would make sure your comps sqft is within 20% of your finished house. 

Being the biggest house on the block can sometimes be bad because your bogged down by the prices of the smaller houses surrounding yours. 

The houses that I checked that were around the same size within a .5 mile radius were selling for around 150k, but all of the houses in that area were around the same size and price range. Which is why I was wondering if the house would sell for less because it's not in the same area as the other houses.