Comps!

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Originally posted by Account Closed:

Is using the average square foot price in recently sold homes in an area a good way to estimate the ARV or FMV of a property?

It is if you have a comparable property.  You need to look at the listings for what was recently sold and then make adjustments on top of the $/sf valuation.  You want to use houses that have within 10 or 15% of the square footage as your target property.  You can't really use $/sf from a 2000 sf home to estimate the value of a 4000 sf home.

As long as the houses are comparable, then $/sf will be one of the top things to consider.

If the homes are in comparable condition(updates, property condition, features, etc) and are within 10-15% of the same SF, same features.....garages, carport, same type street, etc. in the same neighborhood.

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