Comping out Recent Sales to calculate ARV

[Samson Kay]

Just wanted to get everyones opinion on the following method for calculated ARV.

I have 3 recent sales all 3 BR 1- 2 bath with a garage, But the square footage is much smaller and overall lot size is also much smaller compared to the property in question.

Is it acceptable to use the average price per squarefoot of the comparables and multiplying it with the squarefootage of the property to calculate the ARV? Of should I base it primarily on the average sales price for a 3 br 1 Bath?

Thanks

[Phil Z.]

When I do a CMA I always try to keep the sqft within 30% and a 1 mile radius (for suburb). That's first things first. Then if you want to get into detail on adjustments, I use this formula. (If the area has high land value, you might need to divide by an even larger number than 2.)

example: Comp_Sale_Price / Comp_SqFt = Comp_Price_Per_SqFt

Subject_Sqft - Comp_Sqft = Sqft_Difference

Comp_Price_Per_SqFt * Sqft_Difference = Adjustment_Subtotal

Adjustment_Subtotal / 2 = Final Adjustment