Comp Readjustments for Discrepancies

[Muaz I.]

Just getting started with wholesaling and concluding my first month of consistent marketing. I've got a few leads on the table and am starting to run into a problem. When pulling up comps how do you guys readjust your ARV for discrepancies which may arise?

For example, I'll often run into a property which may only be 2000 sqft but it sits on a 2-3 acre lot. From my comps I find enough similar properties with the same number of bed/bath/sqft/etc. but none of the comps will have the 2-3 acre lot size of the subject property. How do i readjust my ARV to account for that extra acreage?

Or for example, if all my comps don't have a swimming pool but my subject property does, how do I adjust my ARV and account for that?

Or, If subject property doesn't have a garage, but all of the comps do have a garage?

Does anyone else run into similar problems?

Sorry If these questions have been answered elsewhere, I didn't have much luck finding any answers. Thanks in advance!

P.S I'm located in Dallas, Texas if that's relevant at all to my inquiries.

[Shaun Reilly]

Originally posted by Muaz Inaam:

@Shaun Reilly

Thanks, so I know that in Texas it definitely adds to the value, however, is there any quantifiable method of determining how much the lot size will add to the ARV of a property?

or maybe in the above example, if I was to determine the ARV to be more than $175,00; is there a cap to how much more I should add to the value per acre?

Well yeah there is a really easy way, find similar houses on similarly sized lots. But that is your problem, you don't have any to compare it to on that characteristic.

Alternatively you can find other houses, that aren't similar to yours but are similar to each other, that have the same kind of discrepancy. Not perfect but if you can find things where the only big difference is the lot size you can maybe work out some value to the extra land.

You could also just ask some local agents how much more they think a place on 2 acres vs. a quarter acre is worth. Take that number with a grain of salt but can give you a ballpark.