Hello and Welcome.
We joined this community in hopes to get some real estate questions answered as well as answer questions that we can assist with. Our first inquiries follow:
In terms of After Repair Values, we have heard a number of ways that these can be done. Perhaps that is correct, but most of us understand that mathematics is an exact science. So how could this be...
We have come down to 1 method:
We have found that if you have a subject property you would take 3 comparables within 1 mile of the subject property, at most, and 100 +/- sq. ft. and ~$5,000 +/-, sold within 6 months and then run the numbers in this fashion:
house 1: $200,000
house 2: $185,000 = Total Sales ($576,000)
house 3: $191,000
house 1: 2,000 sq. ft.
house 2: 1,900 sq. ft. = Total Square Footage (5,725 Sq. Ft.)
house 3: 1,850 sq. ft.
Total Sales
-------------- = $100.61/sq. ft.
Total Sq. Ft.
Subject Property Square Footage * $100.61/sq. ft. = ARV
Q1. Is this what are others are doing out there?
Q2. Does this really give you the ARV?
Q3. Are there other methods to calculate ARV??
All valid responses will be taken and digested at our next focus group meeting next week.
Thank you in advance,
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