Hello everyone, I have been studying and learning as much as I can on RE wholesaling. I am new and have not done my first deal yet. My concern is when It comes to finding the ARV of a property we want a minimum of 3 Comps with the same year built and within a mile radius distance. However, my question is how can we best determine the ARV when the property for sale has a larger lot sq.ft than the rest of the properties around it.
Suggest you hire an experienced realtor to let them do it for you. As simple as it looks most investors do not understand what the lenders consider what the value is and how adjustments are made. When in doubt get an appraiser.
Hey, @Bernadino Lopez I’m an agent in Augusta, Ga so our markets may be a little different but square footage isn’t always a huge factor in price. To an appraiser 100 sq ft is not even considered. Also is it main floor square footage? Basement spaces do not get valued the same as main floor. Location and the market around your property will give you the best idea of your value obviously. So try to find your comps with same bedrooms and bathrooms if possible and think about your audience. Is it gonna be sold to a family with children or a college kid who doesn’t care about school zones. Once you put it on the market , the offers you receive will let you know if you’ve priced it right. If you receive 10 offers in the first week, odds are you’ve priced it low. If the vice versa occurs and you get no offer it is priced high. The good thing is you can always negotiate. Honestly, I would consult with a GOOD agent who knows your market! Best of luck to you!
@Sam Shueh Also some good advice! An appraiser is a great friend to have.
Professionals do not like to publish a former report. Often if it is something they can do at their office/home they will give you discount w/o a former rpt or onsite inspection.
Updated almost 2 years ago
A verbal report or eMail saves $.
@Sam Shueh sorry, I don’t understand what you are trying to tell me...
Thank you all for the help. I appreciate everyone's feedback.
https://assets2.biggerpockets.... This helped me understand how to calculate ARV a bit better.