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Oasis Duenas
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Figuring out current property value

Oasis Duenas
Posted Mar 10 2024, 00:08

I'm in the middle of determining my ARV for my first possible fix-n-flip. How do I calculate the home's current value, are there other ways of doing it without an appraiser?
I’m trying to learn as much as I can and be as hands on as possible to understand everything more clearly. 

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Andrew Freed
  • Investor
  • Worcester, MA
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Andrew Freed
  • Investor
  • Worcester, MA
Replied Mar 10 2024, 01:31

@Oasis Duenas - Yes, you can always inquire with an experienced real estate agent to run a comparable analysis of the ARV under the assumption that they may list it once you are completed with the flip.

You can also do it yourself. Normally, for comparables, you want to look up recently sold properties within a half mile to a mile (the closer the better), in similar condition, square footage, amendities as the end product, and the same or similar bedroom/bathroom count. You can google how appraisers determine value and use a similar approach. That is more or less what agents do when determining the sales price of a listing. I hope this helps! 

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Jacob Sherman
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#1 Land & New Construction Contributor
  • 12 Penns Trail Suite 138 Newtown, PA 18940
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Jacob Sherman
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  • 12 Penns Trail Suite 138 Newtown, PA 18940
Replied Mar 14 2024, 14:02

Best is to speak to a local realtor . They pull the same comps as the appraisers do 

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Shawn Parsh
  • Real Estate Investor
  • Tennessee
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Shawn Parsh
  • Real Estate Investor
  • Tennessee
Replied Mar 25 2024, 07:52

Oasis,

I agree with the comments so far. I would make sure you stay connect with what is selling in your area and for how much. I would also keep an eye on what types of properties, with what features are moving faster than others. Also keep track of rental demand and prices. A good realtor (which is sometimes hard to find) is a great resource to estimate current property value and ARV, however, remember that they are going to give their opinion based on what they see on the market. You as the investor are ultimately responsible for the results so know your market.

I invest in a small rural community where there are often few comparable close by, so it is even more important for me to know my market. Good luck.