Right or Wrong? ARV is influenced by closing costs & commissions

[Melanie Hartmann]

Someone argued that ARV is determined, in part by, closing costs and agent commissions. What do you think and why?

[Jerryll Noorden]

ARV= After Repar Value.

This is the MARKET value of the house after it is fixed.

The quesrtion now becomes... what does one consider "fixed".

To someone "fixed" could mean, everything is in working order. Someone else may argue, that fixed is working order PLUS updated.

So an ARV still depends on the person.

So it makes perfect sense that a true ARV depends on the local comps!

ARV has NOTHING to do with agent commissions. We buy houses based on the ARV right? And we buy houses in cash eliminating agents all together. So an ARV can not depend on agent commissions.

Now an offer price depends on everything (ARV, Holding costs, Smurfpoopies clean up from rampant smurfs pooping their pants as Gargamel was chasing them. I wonder if smurfdooddle is also blue... interesting. They probably poop out blueberries!

OHH OMG OMG OMG  I know how Blueberries are made now.

MAKES perfect sense.. You grab a smurf in your hand  fold the legs up so their feet touch their smurf chests as their smurfie butt is sticking out from the bottom of your palm and give it a quick squeeze and PLOOP....  a blueberry dispenser!

This is a perfect pitch for "How It's Made". Blueberries!

Dude I have no idea where I was going with this..

Let me re read the beginning..

OHH yeah..

ARV... yeah that is just the value of the house after it is fixed. Your definition of fixed, determined from the local comps.

Blueberry power!