Best way to calculate ARV??

[Ali Saad]

Hey everybody! I'm an out of state investor, familiar with the podcasts but new to the BP forums. 

I'll make this short and sweet - what is the best way to calculate an ARV? The ways I really look at are:

- local agents/contractors/appraisers

- comps 

Are there any websites or BP links I can utilize for something like this? 

Thank you in advance! 

[Scott E.]

As others have said, you need to look at comparable homes that have sold in the immediate area within the past couple of months (comps).

You can use Zillow for this. Just update the filters to show SOLD and WITHIN 6 MONTHS and then look around the neighborhood that you are thinking about buying.

In a declining market like we're in, it's also important to pay attention to the PENDING properties and FOR SALE properties. You may have had a comp sell 2 months ago for $500k. But if that same model 3 doors down is on the market for sale for $450k and not selling, then that is an indicator that shouldn't be ignored.