From the course: Real Estate: Navigating the Multiple Listing Service (MLS)
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Valuing the property before and after repairs (ARV)
From the course: Real Estate: Navigating the Multiple Listing Service (MLS)
Valuing the property before and after repairs (ARV)
- [Instructor] Step Four: Determine ARV, which is the after repair value. ARV is simply what this property will be worth, the value, when it's all fixed up; the sales price when you're done with the rehab. We use comps, or comparables, to determine ARV. Using comps means taking the subject property we are interested in and comparing it against other similar properties. Let's take a look at what we do to choose comps to analyze our deals. The field agents you're working with can also help you get comps and give you an idea of the ARV. Comps are similar or comparable properties. We need to be comparing apples to apples. So the closer the comp is compared to the subject property, the more accurate the data point for helping us understand ARV. Sometimes we don't have perfect comps. They just need to be reasonable. If the comps aren't there, then we should think twice about making an offer or doing the deal. Here's…
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