determining arv from comps question.

[Matthew J. T.]

I ran comps using a local MLS website in the area, and my question is: Is the ARV based on the highest price in the area, or average price ? I'm pretty sure it's average, but just wanted to make sure. All the newly listed ones are shown at prices ranging from 150k - 170k in the area that is 3bed to bath. So I wanted to get the most accurate figures.

example:

Highest - 223k
Average- 152k
Lowest - 95k

Thanks.

[Marc Freislinger]

When you look at comps, you want to check the condition of the properties sold. You want to judge your fully rehabbed home against other fully rehabbed homes, rather than SS or REO properties. If you fully rehab a home, and price at the same price as an REO, you're not getting top dollar for your home, and not helping improve home values in the area. Always make sure to judge apples-to-apples. REOs and short sales sell at a discount due to the joys of dealing with a financial institution.