Great deal or pass

[Damilola Olowu]

Hello people!, how will I be able to know when the deal is a great vs when it's a pass. I do have knowledge about ARV how would you find out if the house will have a good ARV before I purchase?

[Paul De Luca]

@Damilola Olowu

Ask your agent to pull sale comps and seek to match those comps with your renovations.

[Scott E.]

To calculate ARV, you look at the recently sold homes, the pending homes, and the for sale homes in the immediate area.

In a market that is shifting like we are in today, it is even more important to look at "pending" and "for sale" listings.

A home in the neighborhood may have recently sold for $500k. But if similar homes in the neighborhood are now for sale for $465k, that shows you a downward trend that you need to be mindful of.

Calculating ARV is something that comes easier with time. Your best bet in the beginning is do what Paul suggested and ask a real estate agent to help you calculate your ARV.

[Steve Meyers]

@Damilola Olowu it depends on what you are trying to do. Are you trying to wholesale it and assign it or are you the end buyer trying to flip it? That will determine what percentage of ARV you want to purchase it at. Look for like properties that have sold within the last 3 months with the same number of beds, baths within 20% of the square footage within a 1 mile radius that have been renovated. If there are no comps then expand the radius another mile or you can go back 6 months. If you're working with an agent they should be able to do this for you. If you'd like help send me a PM.