Determining ARV

[Brandon Purdeu]

Looking for some tips an evaluating ARV. I seem to be coming in really low but I'm using the formulas and following the advice here. The home in question is a large house in Pinehurst NC. It is in an estate and owned free and clear. They are asking 270k it's 4 bedroom, 4 bathroom 2700 sq ft with 500 unfinished sq ft in the attic that can be converted with HVAC and finishing. House needs a interior remodel of about 80-90k. Realtor pulled comps and I have 2 good comps one not finished nicely sold for 302k and one finished nicely for 380k but about 3400 sq ft. So I set ARV at 350k. I'm being told to use price per sq ft which is about $135 in the town which puts ARV at 425k ish. Which do the experience investors put more stock into price per sq ft or local comps? I offered the seller 185k cash for the home and they basically told me to come back with a serious offer. Any tips?

[Kuba F.]

Brandon Purdeu Generally price per square foot is a good starting point in most markets. With only 2 widely different comps to determine value all I see is risk, you need at least 3 recent comps, 5 is ideal. It's proximity and recent sales first, then similarity.