How To Determine ARV on This One

[Joe Martella]

Good morning everyone.

I am in contract to purchase a 3br 2.5 bath townhome. The only difference with this unit is that it was modified to enclose the garage. The repairs needed are not that much $5,000 - $10,000 to include new appliances and the enclosed room is insulated and carpeted. All I need to do is add a closet and a door and it is a bedroom.

The problem is that this will be the only unit with a 4th bedroom. That is where my question lies. The past sales of the similar townhome units were all 3br 2.5 bath. There were three recent sales - $177k; $185k; $211k.

This unit has more living space since the garage was enclosed and will have another additional bedroom. How do I know what the value added would be? Can I use SFRs as a comparison vs townhome?