how to estimate/find/determine ARV

[Corey Demuth]

how do you estimate the realistic value of a property after repairs will be performed? or even just the value of a property (that doesn't need repairs) ?

do you have to pay money for some kind of appraisal service or to have a contractor look it over?

[Curt Davis]

Corey,

I have a relationship with a local appraiser who gives me the ARV so when I sell it and it needs to be appraised he will get the job. You need to form a relationship with an appraiser who will help you out.

[Ryan Webber]

The most effective way to determine the ARV of a property is through comparable sales (comps). The largest, most accurate database of comps is the Multiple Listing Service (MLS). Normally real estate agents are the gatekeepers of the MLS. In some regions title companies are the gatekeepers. Appraisers use the MLS to determine the ARV through comps.

I personally use an average sold price per square foot for that area to figure ARV. That along with figuring in a couple different factors normally gives me a fairly good general estimate of ARV.

To be more accurate, you should pull 3-5 individual comparable houses (roughly the same square footage, bed/baths, amenities, etc.) that have sold in the last 3 months (sometimes 6 months depending on your market) and figure an average sold price per square foot and then multiply that by your house's square footage.

Curt, on a side note, do you find a formal appraisal to be an accurate estimate of what it will realistically sell for? I've had the worst time with traditional appraisals. In my market, they always seem to come in over-priced.

[J Scott]

As Ryan alluded to, find a real estate agent to work with; he or she should be able to provide you with the comp data you need to determine a realistic price-point for the location, property and condition.

If you need something more formal than doing it yourself but less formal than an appraisal, many agents can perform a "Broker Price Opinion" (or BPO) which will give you an idea of the market value of the property (many agents will charge for this, though).