What is the best tool to use for calculating ARV?

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Bill J Fay · Answer

At the end of the day, ARV is determined by what the buyer is willing to pay. Utilizing a RE Agent that will eventually be listing the property is a great way to learn the art of coming up with an ARV. Make sure your Agent works with investors, or even invests themselves. There are so many factors that go into coming up with a value. Draw a half mile radius and gear down the bed/bath count, square footage, garage size. From there, assess how updated the finishes are. You can always start with Zillow, Realtor, etc., but do not take them face value.

Carlos Ptriawan · Answer

ARV is just comps actually.Case study: comps in one block is $500/PSFSo there are these houses:a) Selling for $450 PSF , with bathroom needs remodel and outdated kitcheb) Selling for $460 PSF, with all carpets and all new but it has water damage all over.Which one that you choose ? nothing LOL.BUT ....If during Q2 2022 the PSF is about $1,000and now it's selling for $700 PSF while neighborhood is $800 PSF, I would buy this house, why ? because within 3 years pretty sure the PSF gonna reach $1K again.For me I care more about the market, than the house itself.If margin after ARV is only 20K I would rather invest the money into SVOL

Eudith Vacio · Answer

Hey @Chkyla Oldenstam - yeah you will have to look at a multitude of factors for example, square feet, when are you planning on selling, the type of finishes you have in the house will also make an impact. Your realtor should be able to pull in some comparable but you will also have to analyze each house individually against the one you are trying to rehab.

Johann Villalvir · Answer

Calculating ARV is more an art than a science. Give a property to 10 real estate agents to get an ARV and you will end up with 16 different ARVs. For us, we use machine learning and big data to predict the ARV as close as possible, however, there are several factors that sometimes the data does not account for (distance to train tracks, traffic patterns, ratio from renters to owners) that can affect the ARV differently street to street.

What is the best tool to use for calculating ARV?

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