Adjusting Comps to Determine ARV

[Matt M.]

In my area, you rarely find sold comps that are similar to your subject property.  Either they're very different in sq ft, style, too far away, etc.  As a result, you almost ALWAYS need to adjust the comps in one fashion or another.  Can a seasoned flipper please tell me how they place an adjustment for the following: square feet, # baths, # beds, finished basement,  garage, etc. I'm particularly interested in the 1st four - namely square feet, baths, beds, and finished basement. I'm located in the northeast and for homes in a first time buyer neighborhood, it's not uncommon for price/sq ft to be around $175/sqft.  So, would you use that amount in the adjustment? For instance, let's say I had two identical houses in every way except sqft.  One is 1400 sq ft and sold for $200K.  The other is your subject property and only has 1200 sq ft.  Would you adjust the first comp down by $35,000? (200sqft X $175/sqft)).