These comps ain't loyal...

[Gregory Ballard]

I am looking at buying a house that's in need of serious rehab, We originally factored the ARV to be about 305k, but a house just sold two blocks down for 400k. Now, the seller wants to sell based on the new comp and is pricing his property at 315k (which needs a new everything). I'm can't do that price, but how does the market adjust to these anomalies in the comps? How do I price the (exaggerated) comp into my model for determining ARV?