ARV

[Peter Mazzapica]

In order to arrive at the After repair value what tools can one use other than MLS?

[Alex Applebee]

Averaging price per square foot is not a good way to go. Also know that this is something SOME realtors try and use to beat you down on your price when selling. It isn't an accurate way to calculate values, and it isn't really the main factor in appraisals. 

One realtor tried to use this to justify a sales price of 190k on my first project. He told me how my place was so overpriced and would not sell at list price, nor would it appraise. I however knew the comps and what the property was worth, and sold it for the list price of 210k, backed by not one, but TWO FHA appraisals (due to selling the property for more than twice what we bought it for.) MLS is the way to go. I got my realtor license specifically for this. I have no interest in being a realtor, but I like saving 6%, doing my own comps, and walking through other properties on the market at the same time as mine. This lets me see my competition, and what is really a comp and what is not (magic of a good photographer hides a LOT.)

I am only on my second project, but I have no idea how or why people do this without getting your license. Too many realtors out there are full of hot air and will tell you whatever you want to hear, or whatever their client wants to hear when beating you up on price. I like having my own REAL numbers to help me stand my ground.

Good luck!