Trouble finding ARV in rural east Texas

[Chris Meyer]

I'm having trouble getting an ARV. I've found a property on the mls that is a 4/2 on pier and beam in a mostly mobile home rural area. Mobile homs are listed for 70k to 100k in the area. My realtor said he can't find any comps in the area. Losing price for home is 25k (pretty sure I can get it for less). And thinking rehab will cost 25k to 30k. Could I use an appraiser go value? Or should I leave this one alone.

[James C.]

Chris, 

There are a few ways to go about this. 

1) Replacement Value.  How much would it cost to build a new structure?  You can then adjust for age, repairs etc. I would probably look at this as a max value. 

2) Find comps in similar towns and adjust for location differences. Example: Subject property is in Jefferson. No properties like  yours have sold in Jefferson or another rural town close by. However you notice that a similar to the subject property sold in Marshall. 

You further find a home different than yours in Jefferson that has sold and a property that sold in Marshall that are the same. Take the price difference between locations and apply it back to your comps to get the subject property price. Think triangulation.

3) Adjust and use more comps. You make larger adjustments and use more comps. 

4) Use older comps and adjust for market time differences. 

If you have a buyers broker,  have them go visit their favorite Appraiser  (or better yet, make friends with an appraiser ) and discuss the value with them. You could always hire an appraiser to get you a value... but that costs  $.

Hope this helps.

Good luck! 

Jim