Help with Analyzing Deal

[Juli Woods]

We put in a curb offer on a property and after getting inside found structural issues. We estimate the repairs to be around $100k including a hefty contingency. We had originally comped it at $215k with high end finishes, but our realtor says we could get $263k. Houses in that area have gone that high and higher, but many are larger. The comps she used had 300sf to 400sf more. One comp we used, and she didn't, came in at $189k. I'm looking for thoughts on which number we should use for ARV.

[Michael Magno]

@Juli Woods

As an agent myself, adjustments have to be made when “comping” a property. 300-400 square feet (at least in my market) is a large enough swing, I wouldn’t consider it a true comp. We like to keep

Our comps no more than 10% difference in square footage, and then make the necessary adjustment. Hope this helps.