Finding ARV Comps Not So Easy

[Rhonda Davis]

Maybe it's just me. Maybe I'm over-analyzing. Webinars show how quickly the BP tools can help you decide if a deal is worth pursuing. In reality, it takes quite a while getting the input right. I'm finally fair/good at estimating repairs from on-line pictures. I've questioned realtors and bankers and I can also ball-park settlement costs. However, when it comes to ARV I am spending hours and hours coming up with a number!

Why? Because I’m not trying to see what similar properties are selling for so I can make sure I’m not offering too much. I am an investor looking to flip a distressed house. I am supposed to back-in to the offer price. Right? I want to know what homes have sold or will sell for, that have the features my house WILL have when I’m done.

I pull up many listings according to # of beds/baths/square footage/distance etc. Then 1-by-1 I look at pictures and eliminate those that don't have the updates I am planning. Sure, I note the list price but again, I am an investor trying to get my ARV. This is time-consuming! And when I pull up properties that have sold more than a month ago, there are rarely pictures of the inside.

So the problem is, first it's very time consuming just to narrow it down to 3 properties or so that match my criteria. And, since there is rarely a check-box for "newly rehabbed", my searches end up with low ARV that really represents many old (not updated) properties. I'm looking in PG County of Maryland, close to DC so there is a lot of competition. Recently, I started asking a realtor for comps but get the same thing (usually after 24 hours). I must get to my ARV much faster without being reckless.

I thought I’d reach out to other BP’ers to see if this is a real issue for any of you. Your feedback would be greatly appreciated.