Seeking Guidance on Property Valuation

[Matt Cook]

Hello!

I hope this message finds you well.

I have a family member looking to sell their older home, which recently appraised at $1 million. After discussing their goals, we realized they would like to maximize the property's value while also including me in the process, given my background in general contracting. We came to an arrangement where any sale price over $1 million, minus construction costs, would result in a profit-sharing opportunity.

I'm currently trying to determine the After Repair Value (ARV) for the property but am having difficulty finding reliable comparables. Could you kindly suggest the best resources or methods to identify comparable properties in the area? Your expertise would be greatly appreciated!

Thank you for your help!

Best regards,

[Peter Mckernan]

Quote from @Matt Cook:

I would really get with a realtor that is in the area of that property and that sells a lot of homes to comp the property on what it can sell for after the remodel. These numbers on their access to the MLS will give you the best evaluation to what you can sell it for once you are done. You could also get a couple different agents in the area to get you good comps on what to sell it for and compare on what they say the out price can be.

[Zachary Deal]

@Peter Mckernan hit the nail on the head. Find a local realtor that will sell the property when renovations are completed. They can pull up comps for recently renovated or new construction properties from the MLS to get you a better idea of a realistic ARV.

[Matthew Paul]

I have a rule , never do business with family or friends . Too much to lose besides money