Market value advice from real estate agents

2 Replies

Good afternoon,

This question is geared for all the talented and experienced real estate agents on BP.  

Scenario: I have 2 comps at extremely different prices for similar houses in the same area ($450K vs $390K). One house ($450K) has been completely remodeled. The other house ($390K) has only been cleaned before listing. If most comps for houses that have NOT been remodeled are in the $370K-$390K range, what would you choose as your ARV on a remodeled house?

I have heard 2 schools of thought:

1. ARV is roughly $410-$420K. Why? That's the middle ground between the avg and the high.

2. ARV is $450K-$460K. Why? Once a high comp has been established, that can be the baseline as long as you remodel your house to that same or better standard.

What is your thought process on the scenario above and why?

Thanks in advance!

You want to compare like for like. If a fully remodeled comp sold for $450K and your potential listing meets the same criteria in terms of age, finish, features, then you should comp out at something similar to that higher number as that property is more of a match.