I was just curious about how other investors are determining the ARV of their wholesale properties. I know you can use comps or do an appraisal. The way I was looking at doing it is using comps but I’m worried that I won’t be able to find any ones to base my ARV off of due to the fact that there won’t be enough sales. I am just kinda curious about what methods other investors are using.
The only way you can get a real ARV is just what you said about using comparable sales. You need to be able to either pay for an appraisal or be able to do an evaluation of whatever comparables you can find to get your ARV. Don’t rely on some place like Zillow or even a RE agent.
I’m just about finished with a report I’m writing on how to do your own appraisal. It explains how to do adjustments to comparable to compare them to your subject to get the value. If you don’t have many sales you’ll need to go further away to get comps. Try to stay in similar neighborhoods with similar properties. You’ll need to learn how to adjust for differences in the subject and the comps as the fewer comps the more differences.
I hope you get the idea. If not either PM me or ask more questions in your next post. Watch for my announcement when I offer the appraisal guide. It will be free and will be invaluable to investors.
Good luck,
donrock
I understand exactly what your saying. And that is what I am planning on doing I just didn’t want to get a property on contract for an inflated ARV and not be able to wholesale it.