Comps are all over the place, which one do I choose?

[Ryan Johnston]

Hey BP,

Kind of in a predicament here. I'm running comps on this property and I'm seeing stuff all over the place in terms of price. I'm trying to get an ARV for this property but I'm getting stuck on what it could be worth once its fixed up and I usually never have a problem with this. House is a 3 bed / 1 bath at about 1000sf and it's on a 7,200sf lot. I plan on having the house have an open floor plan, granite, updated flooring, new windows, adding some curb appeal - the works.

There's properties in the neighborhood selling from 30k (absolute dumps) to upwards of 175k (same level of rehab but 100+ days on market). And then there's middle grade properties going for around 130k (good rehabs going for list price in about 1-2 months on market). 

I don't want to be too optimistic and assume I'm going to get it for 175k but at 130k the deal doesn't work. 

Can someone help me out with a comp?

(a lot of the houses that are around 60-75k aren't in good shape. Think of those as mid-grade rentals)

[David Hall]

When this happens to me  you have to tighten up your criteria.  Narrow the search area to that specific block if you can.  Also, only count comps with similar layouts.  Maybe bungalows are hot in your area which is why they sell for more even though they are identical in sq ft to other homes.

Days on market is very important.  Using the search you already did, consider the homes that have less than a week or two on market.  This price point is where the greatest demand is, hence the quick sales.

Hope that helps.