How Do I Determine the After Repair Value (ARV) of a Property? [#AskBP 012]

The ARV (After Repair Value) is one of the most important numbers to know, whether you are a flipper, landlord, or wholesaler. On this episode of the #AskBP Podcast, learn how to find the ARV through the use of comps, as well as a discussion on where to find the perfect comps for any property. Stay tuned!

[amely]

I'm glad you made this answer simple. ARV is basically the comps (homes sold) in that neighborhood or area.

[TheMindProxy]

I would suggest getting an appraiser as part of your team. I think you can do a Deed search and find the purchase price through your county records if im mot mistaken. Im studying how to invest before I step into the game.

[RyanLundquist]

Some good tips here Brandon Turner. I would echo the importance of staying within the neighborhood. If you don't have recent sales, look up older sales in the neighborhood (that are similar in size), and then consider how the market has changed over time. Also, be very careful about using price per sq ft metrics to determine value. It's VERY easy to come up with an inaccurate value when using a random price per sq ft from a different sale (that might not really be relevant or applicable to the subject property). Lastly, don't make the mistake of thinking acquisition cost + rehab cost + profit = market value. Like Brandon said, find what similar rehabbed sales have actually sold for.

[jamesofalltrades]

What about duplexes around single family homes?

[BB-cwuv]

You could just go to Zillow to see what houses were sold than take them same addresses and look on your city municipal website to see the real accurate number

[ApartmentKing]

If a real estate agent runs comps for me, for her time and trouble, I'd give her a gift card to Starbucks or Dutch Bros. or a local restaurant. Or gift them with a little cash. Make it worth it for them. Make them want to do you favors. Let them know what you're looking for and why, and reward them for working with you. Hell, they'll come asking if there's anything else they can do to help you. That's called building relationships. The worst thing is to ask ask ask ask and never do anything for them. That's a good way to make them feel used and taken for granted.

[perriceitconsulting]

Try the ARV/MAO quik Calc on google play. Its does all the work for you in less time.

[mortgagedavid]

bigger pockets rocks! i subbed and liked! make sure to put this stuff on soundcloud since some of us have android! (the askbp stuff) change the intro music! canada loves you! all

[BB-cwuv]

Same thing as paying for list . Everything should be on your states website

[gloriaiarango]

Just go to the MultiListing on you area and they have records of sold houses for the last two years at least. Zillow and other websites have those number too.

[alexgonzalez]

great info trying to get into the business

[martytrue]

Could you answer the same question, but applied to commercial/multifamily?  Determining the ARV of a SFR is much different than for a commercial property or specifically, a multifamily apartment complex.

[iPadiPhoneiPod]

Appraiser over comps any day. But comps are still good to go off of

[BrotherAbrahamMuhamm]

So what my moms and them think isn't important? :-) Great vid. Thanx man.

[mortgagedavid]

change the mic cover too! it says bigger pockets haha

[Macklin]

Clearly William Arthur Ward never sold drugs. Loved the vid though, preciate the tips

[Dan]

You really don’t have to do all of that people love making everything in life difficult Lol. Get online do your due diligence it only takes about 15 min for you to look up comps

[workingshlub]

no sense making your property super nice if all the others around you are dumps...doesnt pay off.

[bjduncan]

It’s not rocket science. ARV shouldn’t be this complicated