Estimating ARV adjustment amount

1 Reply

Greetings! :)

In regards to estimating ARV, how do you calculate the adjustment amount to compare properties. For example if a comp has one more room, bathroom, garage space how do I know how much to add or subtract from the sale price?

@Michelle Garcia

Ideally your market has enough comps with houses that are similar square footage, bedrooms and bathrooms as your subject property. If you exhaust those and still need comps, you can use other br/bath combinations. Take two closed transactions that are alike in everything except for one item (bedroom, bathroom, etc) and compare the price differential to give you a ballpark of the value difference for that item.