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Account Closed
  • Real Estate Investor
  • Phoenix, AZ
76
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How to Adjust ARV for Location Issues

Account Closed
  • Real Estate Investor
  • Phoenix, AZ
Posted Aug 9 2014, 21:40

I needs some BP help on how to adjust my ARV based on location issues. I often come across motivated sellers who's house is located:

1) On a corner lot in neighborhood. Meaning there is an inner subdivision street on one of the properties sides *and* the front of their property.

2) Backs up to a busy street.. Most neighborhoods here are bordered on at least one side by a busy street. Thus, they have houses on the perimeter of the subdivision and their back fence faces a busy street. So, there can be some noise issues from the traffic, especially during rush hour, for instance.

3) Actually located on a busy street. They can look out the front window and see the traffic!

When pulling comps with-in the given subdivision or with-in 0.5mi of the subject property, most of the time I can't find 2-3 similar properties with the *same* location issue noted. I can find similar homes in all other respects, just not with the same location issue as #1-3 above.

As a wholesaler, I know most investors won't even touch #3.. so I pass on the. But for #1 and #2, how much should I discount the property from the comps I find without that location issue? 

I appreciate your inputs in advance!

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