Hello everyone, I'm having difficulty when it comes to calculating ARV. I have a good sense of what goes into it (I read J Scott's Guide to Estimating ARV), however I'm having trouble on determining the adjustment values for say an extra bedroom or bath or age of building or cost of porch/deck.

Is there a resource you guys are using to determine these values? I've read it's not always good to use PPSF. 

Are you getting guidance from a property manager or contractor?

Thanks!

Chris

Also, what if comps have same number of bedroom/baths but 1,000 less sqft? How do I assess the price adjustment for this? 

@Chris Marte Price per square foot is exactly how comparable sales are used to determine a home's market value. It is one of three methods used by appraisers, so I don't know where you read PPSF shouldn't be used. 

@Anthony Dooley Gotcha. Alright I'll use this for sqft adjustments. 

How about adjustments for unique characteristics, like age of building, a fireplace, deck/porch, etc. Do we just estimate based on replacement cost?

The local perception of the neighborhood will affect the market value more than a fireplace or a porch. Those features may attract a buyer, but have little effect on the value.

@Chris Marte have you considered interviewing real estate agents to list the property? This is what a good agent does for you, and you can get all of these answers for free by listing several agents in your area. 

@John Warren This is for a property I'm looking to buy - I don't own it. I'm trying to analyze what the subject property's ARV will be so I can bake it into my projected refi and cash left in the deal.

@Chris Marte even more reason to check with your realtor! Even if you don't use an agent for every transaction, they are still an important part of your team. I don't use my residential mortgage guy much anymore since I switched to commercial, but you better believe I check with him every time I am doing something that involves his area of expertise.