Comps using $/sq ft.

[Greg Scully]

I'm fairly new to flipping. When trying to do comps for ARV is it reasonable to use $/sqft of recently sold homes in the same neighborhood?

For instance the house next store sold in 2015 for $103/sqft and is of similar age and condition although it has one more bedroom.

[Eric M.]

Originally posted by @Greg Scully:

I'm fairly new to flipping. When trying to do comps for ARV is it reasonable to use $/sqft of recently sold homes in the same neighborhood?

For instance the house next store sold in 2015 for $103/sqft and is of similar age and condition although it has one more bedroom.

 Yes but you have to be careful. It depends on how cookie cutter the comparisons. For example, in a condo building, we use $ per SF all the time to compare because they are so similar.

Next door is probably great for it in a subdivision, but in Alaska, I am thinking next door might be 5 miles down the road. So I would be careful.

The SF of the house also needs to be very similar. They say within 10% but I stretch that a bit. You can't compare 2000 to 3000 on a per SF basis. And of course you need to make adjustments for lots size, and bunches of other details.