Best way to estimate ARV?

[Douglas Miller]

Got a potential deal on a 3bd 1 bath home with little rehab in my opinion? What are a few ways to estimate how much money needed to put into rehab to get the highest return back at selling? One main thing I’m questioning is if I should upgrade kitchen with new appliance and hvac system.

[Greg Scott]

Douglas:

There is no magic forumla or spreadsheet here.  The key is to get to know your market.  

You need to know what rehab works adds value and what does not.  You have to find that sweet-spot where any rehab work you do puts money in your pocket and is not money down the drain.

I know markets where adding granite countertops won't get you $1 more in price (although it may sell faster) and other markets where granite adds a lot of value and it is hard to sell it without.  In the first one, I would not install granite and in the second it would be a no-brainer.

Rehab costs will vary depending on what is in demand in your sub-market.

Good luck.