All Forum Posts by: Sean Youngberg

Hello BP!

I'm getting a little confused about how to handle finished basement sq. ft. when comparing properties. I'm currently trying to do a CMA for a property with no basement vs one with a 500 sq. ft finished basement. The listing sites are also confusing, as I thought that under-ground living spaces were not supposed to be included in the total sq. ft. However, on Redfin, Truila, etc. they look to be included and used in the $/sq. ft calculation.

For example, check out this listing, there are 1610 main level and 506 finished basement but both are included in the total sq. ft. Is this normal?

The CMA spreadsheet I am using breaks down to the adjusted $/sq. ft. And gives a estimated value of the target property based on that number*sq. ft. When comparing those with finished basements, I pulled the basement sq. ft. out separately but that is really skewing my numbers.

In general, it certainly seems like buyers are paying around the same $/sq. ft of finished basement vs above ground. And even the listings seem to not differentiate.

So newbie here and trying to learn all I can. I've been trying to analyze some deals, but getting caught up trying to determine an accurate ARV.

I've been working on a spreadsheet I modified to do CMAs. My first problem is determine the number to use for adjustments (Age, Lot size, BRs, patio, etc). I understand no one can tell me these numbers for my market, but what did you use to learn some rough numbers for your first couple of flips? Or do you even do this type of CMA in the first place? Is this something I should be relying on my agent for?

Also, any tips for determining condition and level of finish for sold comps when there are no longer pictures posted or relevant details in the listing?

Thanks for any advice you can offer!

Hello BP!

I've just got the bug recently and I've just been soaking in all I can over the past two weeks, mostly all of the great resources on BP. I've been combing through the forums and blogs and the huge library of past podcasts.

I'm planning to buy my first property under 50K within the next two months. I am beginning in my local market of blount county, which is right outside of Knoxville, TN. I am probably going to start with a flip with a partner who is my friend and contractor. Hopefully it will lead to a long-term successful business. I know very little about rehab or construction, so I am worried about taking on a fixer without a knowledgeable partner.

My biggest challenge so far is how to accurately determine AVR without experience. I have been working on doing comps and adjustments, but my hold-up is finding the accurate values for adjustments in my market. Do experience flippers actually do this kind of CMA similar to an appraiser, or do you just kind of "know" what the AVR will be based on your experience?