How to get approximate ARV using Zillow

Question

Hey, I am trying to get ARV using Zillow, Trulia, Redfin etc. with adding filters to show recently sold properties. I specified # of beds and baths in the area where the similar properties were sold, similar school rating, crime, walkable, etc.

But I'm having a hard time to find out how distressed the property was, and no idea to get what the ballpark rehab cost was.  Can you guide me how and where I can get this kind of information before wasting everyone's time and effort to back out of the deal. Any suggestions would be appreciated.

Your next starbucks is on me if you get the most votes from others!

Thank you

Kenneth Garrett · Answer

@Jay Yoo

I use those resources to calculate ARV.  When I use those sources, I can get fairly accurate numbers.  The cost of the rehab someone spent or what it looked like before is irrelevant in  my opinion.  The only thing that matters is what the your willing to pay for the property and your cost of rehab.  After you have that you can determine whether there’s merit in investing.

You can research the address by googling it and sometimes you are able to find the original listing.  Review the before and after photos.  A broker would be able to find that information easily as well it had been listed.  If you able to view both the before after rehab photos then I would estimate the rehab costs.  There is not really a source on rehab.  If they pulled a permit you could request a copy of the permit and permit will have the cost of rehab.  In general those numbers are not accurate as most adjust those numbers lower then actual to avoid the tax assessor taxing them the actual costs.

Good Luck.

Stephen DeThample · Answer

When you see STRANGE numbers and prices in the MLS, it is usually due to changes of ownership within the same owners.  Like divorce, death, name changes, and such.  It looks like they bought it for a small amount but they were probably the owners before as well.

Jay Yoo · Answer

@Remington Lyman Thanks Remington, Frankliton has been on my radar too.

Remington Lyman · Answer

Have you looked at the opportunity zones in Columbus, Ohio? https://drive.google.com/drive...

Franklinton is one of them. It is a way to defer capital gains from the sale of non-real estate capital gains.

Sometimes it is not about the numbers on the surface but more of a tax game.

A big developer in Columbus just met with my brokerage and said "I was shocked when I heard Trump paid $750 in taxes. I told all my friends that was way more than I expected."

Joel Hutchinson · Answer

Hey @Jay Yoo,

I've used Fiverr & Freelancer but not for this purpose. Just remembered the idea from a podcast that mentioned using "Field Vendors" who take a crazy amount pictures and write detailed reports for $20 - $30 for REO agents. Regardless, you would need an agent for inside access.

Jay Yoo · Answer

@Stephen DeThample Thank you Stephen, So it was an owner distress property. thx

Jay Yoo · Answer

@Joel Hutchinson Thanks Joel, I will check out Fiverr. Have you used this before? They wouldn't be able to get in the house without an agent, right?

Jay Yoo · Answer

@Kenneth Garrett Thank you Kenneth, For example, this unit 319 Brehl Ave, Columbus, OH 43222. It doesn't make sense how someone bought it for $29.2k in 2019, and fixed up and  rented out for $1,200 in June 2019 and then, posted on MLS in April 2020, and multiple contracts that weren't closed for $150k

this link shows only exterior old picture on the front side of home. By looking at the front side, this might have been a full rehab, which would have costed close to $100k. Talked to few GC in the area, full rehab would be $100k as long as the foundation is not a concrete slab

Even if this is sold for $150k, with the closing fee for both purchase and sale, and expenses and cap ex being in reserve.

This investor would have lost money on this deal. There is no merit. I even looked at the Public Records but I cannot find the record that the permit was pulled for rehab here.

Thank you, a bit of your help expedites me to put the puzzles together !

Jay Yoo · Answer

@Steven Wilson Thank you Steven. I will keep practicing. I was thinking that this may be a good business model right there. Regulations laws, and lobbies would probably turn off the business but providing knowledge transfer of rehab analysis before and after with pictures and numbers, and most importantly "Publicizing ARV" and "ARV to Actual Sold Price" as well.  This would be tremendous work and effort to get each individual project to get some ideas for comps around the town but I would pay if the cost is reasonable! :)

Steven Foster Wilson · Answer

Your doing the right thing to start, look at closed deals over the past year, get as close to sqft and bed/bath count as you can. Then go through the pictures and see what types of finishes were added (ignore ones without pictures) This will give you a good starting point for comps. If one stand out, read the description see if there is an obvious reason for it being too high or low.

How to get approximate ARV using Zillow

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