Price Per Square Foot
Hi All!
I'm an analyzing an REO in a neighborhood in my area and I have a question regarding square footage and calculating ARV. The comps are really small in square footage in comparison to my subject property so I'm having trouble analyzing this deal. I will put subject property info at the bottom as well as the supporting comps...maybe you guys can help me out? The subject property looks like it needs about 20K to 30K in repairs.
Subject Property: List Price - $174,000 | Beds: 3 Baths: 2 | Square footage: 2550
Comps (All within the last 180 days within Half a Mile Radius)
Comp #1: Sold Price - $155,000 | Beds: 3 Baths: 2 | Square footage: 1051
$104 PER SQ FT
Comp #2 Sold Price - $115,000 | Beds: 3 Baths: 2 | Square footage:
$113 PER SQFT
Comp #3 Sold Price - $145,000 | Beds: 3 Baths: 2 | Square footage: 1222
$118 PER SQFT
Comp #4 Sold Price - $195,000 | Beds: 3 Baths: 2 | Square footage: 1818
$161.57 PER SQ FT
If I average out the price per square foot of all the properties, I have an average of $111 per square foot.
If I multiply it by the square footage of my 2550 subject property that gives me an ARV of $283,000.
Would an appraiser adjust for the square footage difference this way? Thanks so much for your help in advance!