I’m nowhere near ready to start, but I am beginning my journey of learning.
I’ve had conversations with several of my friends and am curious/confused about asking prices and ARV’s.
Is there specific math or numbers to crunch to determine the ARV?
A deal that was sent to me was as follows.
Asking price was 93,000. The ARV was 137,500. Expected repairs were about 17,000.
Just curious if anyone can tell me how that process works. It also might be a bad question or confusing question. Any help is awesome! Thanks!
ARV = After Repair Value. It is determined by finding sold comparables to your property. The prices that these houses sold for are what you use to determine what yours will sell for. You need to find recently sold houses, similar in size, style, bed/bath count and usually try to find renovated homes that fit the end product you want.
With all that said there is no formula, it is your best guess. Just don't get into the trap of coming up with an inflated ARV. Try and be reasonable with it.
Thank you! Just curious. A wholesaler would send emails with all that info and I was just curious how those numbers were established.
I think you are very close ready to start, trust me when I tell you this that none of us were 100% ready to start, just begin and you will figure it out,