Should I follow comps or higher $/sqft for flip design?
Usually, and I've been taught by my mentors, to base my finishes on the available comps (sold in last 6 months), some of which are super poorly designed and not selling for the higher ARV I want. I can't shake the idea that I could get top dollar if I design my flips based on the *finishes* of the homes sold in the neighborhood with way higher price per square foot, regardless of comp design.
For example: I have a 3/2 with 4-5 comps rehabbed with minimal effort sold for an average of $210/sqft. But just down the street a 4/2 sold for $300/sq ft (similar overall square footage, nowhere near year built 🫣). The glaring difference? Beautiful finishes and thoughtful design.
My gut tells me to try it, the veterans say I’ll spend too much on rehab for minimal gain.
In my last example, if I pull off a $300/sqft on my ARV, my profit quadruples. I'm too new to be brave and try without hearing from you guys first - investors, rehabbers, realtors and contractors to comment!