ARV

[Vincent Gamboa]

Hello BP,

To estimate ARV in a property that I would intend to wholesale, it is necessary to have a good idea of renovation costs correct? Recently, when I was driving for dollars I came across a house that I plan to send a message to, asking if they would consider selling their home (Not owner occupied). If they said yes, do I then have contractors come by to give me bids on the repair cost to better assist me in assuring that it is a good deal? Or how would I know that it is a fair price that I will turn a profit on? All I have done so far is look up the recently sold houses on the same street and used the county tax assessor to price out the surrounding similar houses. Thank you all.

Vincent 

[Jeremy Pakalka]

Once you have a good bid for all the work, you can get a good estimate of how much below ARV you have to be to get a deal done. The only way to get a good ARV is to look at the most recently SOLD, not asking price, comps. I guarantee you can find a realtor or two from cold calling them to give you a good estimate for ARV based upon square footage, bedrooms, baths and year built.