How to determine a sales price?

[Gary Charlton]

Hi BP community, I am new to the flipping side of real estate and I am trying to run numbers on a flip that I am looking into and I am struggling to come up with what would be a good resale price once the flip is complete. I have asked for comps from my realtor and he has provided them to me but I am now unsure of how to go about assessing them. Does anyone have any good advice or tips on how to evaluate the comps so I can set my sale price? Thanks for your help Cheers Gary

[Don Belsky]

Your local realtor should be able to give you what's called a CMA (Comparative Market Analysis) and tell you his estimated ARV (After Repair Value). Keep in mind that you should always figure a lower # than his estimated ARV, as the nature of a broker is to hike up your expectations so that you wanna hire them to sell your house.....and then once it comes to actually listing it they'll find reasons why it should go for less...