How do you find ARV if comps are spread out?

2 Replies

I am looking at a townhome that needs a bit of TLC. The wholesaler is offering a little bit over 55k that needs about 5k in repairs. He suggested $77k ARV. I've looked at comparable properties with the same sqft, bdrm, bathroom. The numbers are:

#1 $52,000 DOM: 2 days

#2 $55,000 DOM: 12 days

#3 $70,000 DOM: 11 days

#4 $79,000 DOM: 66 days

#5* $87,500 DOM: 10 days

*The first 4 are from same subdivision.

How would you figure out what the ARV would be from those numbers?

If I were to do a cash-refinance, how can I prove to the bank that it's at least $77k after repairs. 

I would say it is going to depend on what the condition of those homes are...and I would definitely look at the first four comps over the last one in a different sub.  Look at the finishes for number 3 & 4 and plan on being on the same level of those.  Location of the unit, views, etc. will also play a factor.  In my experience, the bank will make their own assessment of value - so you need to feel comfortable that the comps speak for themselves.   

Jonna Weber, Real Estate Agent in ID (#SP41257)

@Jonna Weber  Thanks!  I didn't think about the location and view of the units. #3-4 are a bit more up to date.  

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