CALCULATING ARV BASED ON COMPS

[Jason Malabute]

Hi All,

When you are calculating the ARV of a property do you use sqft of the property or the entire lot?

Additionally, how true is the following information that my agent gave me about calculating the ARV?

"Ages does not make much difference in in price unless it's 20+ years, it's all about the location and condition about the property. Usually neighborhoods are built around the same time so ages does not play a factor. Square footage and bed/bath count does play a direct factor when it comes to value. Depending on the area an extra bed/bath can add anywhere from 5- 10k thousands of dollars. A garage usually adds around 5-10k in value, I haven't seen a appraisal giving more than that. A porch and fire place helps sell a home but does not add a dollar figure value to a home. Square footage really depends on area, in the area that were looking at is about 300-500 per square foot."

Also, how much does "condition" add value to a property? How would I estimate this when calculating ARV?

Thank you,

Jason

[Jamie Turner]

If you're asking for single-family homes, your agents definition does look good. You would look at the condition of your home compared to others your agent sent you, and there may be an adjustment up or down depending if one property is in substantially different condition.