How to Adjust ARV for Location Issues

[Account Closed]

I needs some BP help on how to adjust my ARV based on location issues. I often come across motivated sellers who's house is located:

1) On a corner lot in neighborhood. Meaning there is an inner subdivision street on one of the properties sides *and* the front of their property.

2) Backs up to a busy street.. Most neighborhoods here are bordered on at least one side by a busy street. Thus, they have houses on the perimeter of the subdivision and their back fence faces a busy street. So, there can be some noise issues from the traffic, especially during rush hour, for instance.

3) Actually located on a busy street. They can look out the front window and see the traffic!

When pulling comps with-in the given subdivision or with-in 0.5mi of the subject property, most of the time I can't find 2-3 similar properties with the *same* location issue noted. I can find similar homes in all other respects, just not with the same location issue as #1-3 above.

As a wholesaler, I know most investors won't even touch #3.. so I pass on the. But for #1 and #2, how much should I discount the property from the comps I find without that location issue? 

I appreciate your inputs in advance!

[Brian P.]

Don't learn dollars, learn percentages. For example as a broker I sold many homes to people that wanted to buy in my main town in a certain area and school district and there were two main streets that conducted the rush hour traffic.

Actually the noise inside the houses wasn't very bad. The difference between that street and one a block off these  main arteries was 15%, and 20% for the section closest to town. This price difference allowed me sell to people that really wanted to live in that area and school district. Agents couldn't understand how I kept selling these homes.

I told buyers to visit the homes during the rush hour and see if it was a problem for them, but buying one of these homes would allow them to live in the desired area. The bad feature is these homes would go up at the same rate as the surrounding homes but when you went to sell, you would have to sell at 15 to 20% less then what the surrounding homes are going for, but their value was going up at the same rate as the other homes. Never had one complaint about the deal and most stayed when they could have just as easily afforded to move up.