Finding Value of Home or ARV

[Myron Byrd]

I am in the genesis of my real estate wholesaling adventure and most issues that arise I am able to research or figure out some way or another, except one! I am at a crossroads when it comes to determining the ARV when I know the fair cash value of a property. I know the definitions of each of these, but I am struggling when I get to the point when the Estimated value of a home exceeds the fair cash value amount. When following the formula (ARV x .70 - Repair Cost) I am arriving at a number that is above the fair cash value for the property. My question to you, the Real Estate Investing Community, is - Do I take the fair cash value as my ARV or do I follow along with the estimated value of the home?

Example: after doing research I have found that the estimated value of home is $58,000. 58,000 x .70= $40,600 - $20,000(REPAIR COST)= $20,600. Even after subtracting a $2,000 assignment fee I still arrive at a number above the fair cash value for the home which is $14,000 (which I received from the local PVA).

I would very much like to avoid putting a property under contract and not be able to find a buyer because I followed the Estimated Value method when I should've based the numbers off the fair cash value.

Thank you and your help is appreciated.