ARV Challenge DE, PA

[David Park]

ARV( After repair value) challenge for Delaware and Pennsylvania in the 3 counties( New castle county, Delaware county, Chester county)

The reason why having the right ARV is so critical is because, not only is having the right ARV needed to know your wiggle room. For flippers time is really money if they are using hard money, etc.

So, when it's time to list. A lot of houses want to have the highest price possible, then once they see that no one is biting, they lower the price, and eventually take the market price. This does 2 critical things.

1) Wastes a lot of time (could be months of interest paid)

2) Wastes the new girl effect ( The new house in the market is most viewed the first 2 weeks, after that buyers start asking whats wrong with the house and the seller starts to lose the upper hand)

You can still have the highest price that the market can support by creating a bidding war. As long as its not too low to have bids that you wouldn't take serious. 

If you have the right ARV and the right marketing execution. Then the house could be sold quickly, and you can move onto the next one.

So the challenge: 

Get 20 examples each week as the house comes to the market.

Guess the price they will sell for.

House must be sold within the month of being listed. (The reason for this is prices change with so many different factors, also if it's not sold within the first month it wasn't done right. Especially with the inventory is at 10 year lows now days)

Get 97% correct rate with (+/-)5% error rate from actual sold price.

Get 95% correct rate with (+/-)3% error rate from actual sold price.

Keep in mine the examples that I use are my opinions and should not be used for anything else.

7/8/2017 20 houses that came out this week 

date	Address	City	State	ZipCode	Price?	Actual Price	Sold Date	Days on market
7.8.17	426 Stanley Plaza Blvd	Newark	DE	19713	200k
7.8.18	19 Kodi Cir	Avondale	PA	19311	474k
7.8.19	1131 South Olmsted Parkway	Middletown	DE	19977	371.5k
7.8.20	835 Pennock Bridge Rd	Landenberg	PA	19350	512.5k
7.8.21	1313 Broadview E	Downingtown	PA	19335	369.5k
7.8.22	320 Watchgate Way	Townsend	DE	19734	379.5k
7.8.23	1295 Kirkland Ave	West Chester	PA	19380	417k
7.8.24	118 Bryn Mawr Ave	Newtown Square	PA	19073	431.5k
7.8.25	543 Hampden Rd	Upper Darby	PA	19082	58k
7.8.26	124 Emerald Ridge Dr	Bear	DE	19701	347k
7.8.27	1886 Brackenville Rd	Hockessin	DE	19707	481.5k
7.8.28	275 Devon Way	West Chester	PA	19380	328.5k
7.8.29	2404 Century Ln	Chadds Ford	PA	19317	315.5k
7.8.30	58 Mulligan Ct	Downingtown	PA	19335	355k
7.8.31	911 Powder Mill Ln	Wynnewood	PA	19096	260.5k
7.8.32	1010 Talcon Dr	Wilmington	DE	19804	173k
7.8.33	1216 Woodland Ave	Sharon Hill	PA	19079	145k
7.8.34	3262 Walnut St	Downingtown	PA	19335	135.5k
7.8.35	327 Berbro St	Darby	PA	19023	25k

Wish me luck!