Tools for analyzing ARV?

Question

Hi Everyone,

I was wondering if anyone had found any particularly helpful tools online to help them better figure out ARVs?

Or maybe what methods you are using to figure out ARVs?

I have been going through Redfin to try to calculate the ARV for my potential flips, and I can usually get it done, it just seems like there should be a better way...

Thanks!!

Kuba F. · Answer

Hi @Austin Mueller, Redfin is a great start for finding comps, since they are a broker with direct access to the MLS.

As far as methods, I wrote a BiggerPockets blog post on how to find comps and calculate ARV that you might find helpful: https://www.biggerpockets.com/blogs/8814/68395-how-to-find-real-estate-comps-and-calculate-after-repair-value

Adjusting the comps is a really important facet of calculating ARV that is often overlooked, and the post shows how to do this. Essentially, every feature, such as bedrooms, bathrooms, or garages, should be assigned a dollar amount and the comps adjusted up or down to reflect the subject property. This adjustment will give you a much more accurate ARV as a difference in features, such as garages, could amount to tens of thousands of dollars.

Happy investing and feel free to message me if you'd like specifics on tools that may come in handy.

Jon Crosby · Answer

@Austin Mueller , Clik2Flip uses the Zestimate as a starting point for ARV, which you can go in and edit to adjust to a value you see as more applicable to the rehab you might put into it.

However, you can also purchase HouseCanary's valuation which will swap out the Zestimate for their mean value and it provides low and high values as well.

Based on your rehab goals you can simply adjust the ARV in the app somewhere within that range to get a good basis.

Austin Mueller · Answer

Thanks @Jon Crosby!  That is interesting... I have looked at HouseCanary before and it seemed like they were providing pretty good property valuations, but not necessarily ARV estimates.

I looked at Clik2Flip and saw that it does provide an ARV estimate which is awesome, How is that being calculated?

Is it pretty accurate?

Jon Crosby · Answer

Hi @Austin Mueller ,  check out HouseCanary when you get a chance.  We use them for our premium data options and they have a national MdAPE (Median Absolute Prediction Error) of 2.9% which is pretty amazing!  They are leveraging Machine Learning to provided constantly improving valuations.

Cheers!

Brandon Reed · Answer

Definitely know what you mean. It's really difficult to find a Realtor that has your ultimate best interest in mind and will give you fair & honest evaluations. I'd still encourage you to find that, though. If you can find a single Realtor that you really trust and that you know will give you what you're looking for, that gives you the best and most accurate information without you having to do any of the legwork yourself.

In addition, if you take care of that Realtor by working them into the transactions that take place as a result of their analysis, the'll be even further inclined to help and the mutually beneficial relationship will just go from there.

It's possible to do your analysis alone. But as I'm sure you know, RE is a game of relationships...and you should do your best to build them wherever there is an opportunity to. Pulling Comps is certainly one of those areas.

Just some thoughts :) Hope that's helpful!

Austin Mueller · Answer

Thanks @Brandon Reed, I do have some Realtors I trust to pull comps for me, but I am more of a loan wolf if you know what I mean... I like to do a lot of the analysis on my own if possible.  I have found that sometimes Realtors will inflate values or pick comps that don't necessarily reflect my end goal.  I end up spending a lot of time communicating with Realtors to train them in what I want and less time actually analyzing deals.  Like I said, I have found a couple I can trust, but it was expensive, from a time management perspective, to find them.

Brandon Reed · Answer

Hey @Austin Mueller - Those MLS affiliated sites are certainly one way to do it. Albeit cumbersome and time consuming, they can often get you the info you need. But do you know any Realtors that will help pull Comps for you?

Tools for analyzing ARV?

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