Do you base your ARV by average price or average sqft?

[Vic Wilson]

I am working on the Deal Analyzer pretty frequently and still feel like there is some information I need to learn.

Does it matter if you base the ARV on the average price of houses in the area, or base it off of the average price per sqft of the houses in the area?

[Jonathan Greene]

I would lean much more toward comparable sales than price per square foot in most markets. Price per square foot is good for developments and apartments and townhouses because they were all made the same. When it comes to single-family homes and tow- and three-family units, they are quirky and what you might consider usable square footage (basement and attic) may not be confirmed as square footage.