Whats Your Sytem for Finding the ARV

You take your comps for the area whether it be 3,4,5,or 6 just the ones that are comparable to your subject prop and you add them and devide by the number of comps you have and thats how you get your ARV...

EX: 120,000+82,000+125,000+115,000=442,000/4=110,500
Hope that helps!same kinda formula for determining your MAO (Max Allowable Offer)

Unless you are very familiar with your area, it is probably best to get a number from your agent. Because there are so many distressed properties on the market right now, it is not accurate to use sales comps unless you know the condition of the properties that sold. I try to visit as many listings in my area as possible, then check to see what they sold for. with a good idea of what repairs were needed, I can establish what the ARV would be. If you are in an area that a majority of the properties that sell are in good condition, you can use comps on recently sold properties. Compare homes of simular size that are in close proximity to each other, and have sold in the last three to four months. Establish the price per sq ft of the properties and get an average price per sq ft. Multiply the average price per sq ft by the square footage of the property you are working with. This should be a good ARV.

Al

Al is correct you do need to know what condition the property was in when it was sold and sometimes you have to figure in the concessions which will sometimes show on your county records website. I know our site has it on there anyways (colorado) and an agent can give you a pretty good idea but with the market the way it is alot of factors come into play when you are doing comps i.e. youcant find a home in the neighborhood that has sold in the past 6 months but alot of our investors understand the change in the market and make exceptions as well as you wont always know the conditions of the properties that sold so you just have to decide what works for YOU and your program and system...

I like Al's reply...Distressed property right now still talk to your
RE agent...They will know the facts as to what's hot and what's not.
Kikiw1980 brings the math with a formula and i think that is a fine
way to figure out a ARV!

My goal is to think outside the box and that is what i will do!
I think stick with SQ. FT. with price (And AL DID bring that up).Formulas
are good, I am not saying other wise! I am just saying SQ. FT. to price
is a standard formula...Mixed with instinct...Real estate invester,
You tell me!
I do understand about not being in your area,Still the formula will work!
Keep it simple.

Randy

Thanks for the response.That helps

The After Repair Value (ARV) according to some is the average value of several comps and the same can be said for the Fair Market Value (FMV). My understanding is they are one in the same according to this method. Looking at the house interior, exterior, and cleaning the property using a sheet with estimations of repairs gives you the rehab costs but not the ARV. A Realtor can give you the value...is this right? This releases you from doing more calculations and work. Remember, make your time and money work for you if possible.

I'm all about learning and now...doing!

Bill G.

All these tips are good to use.

I've heard when you are getting ARV, you need to make sure you find homes similar to the one that needs work but that is in pristine condition, and find out those comps, then use the formulas for averaging the comps sale price and square footage to come out with the ARV. Then, you go (ARV * 50 to 70%, minus repairs and your fee = MAO).

I hope this helps you.