ARV or After Repair Value is the improved price of a house after it is repaired. To come up with an accurate ARV, you need to take a look at recent sales of comparable properties (comps for short). For most novice real estate investors, they go to an extent of consulting real estate agents or asking their investors’ opinions. No one has most vested interests in your achievements as you do. Therefore, the better you start determining ARVs for yourself, the better you will become at buying right, selling cleverly and making more Profits. Here are the things to bear in mind when determining the best ARV. When evaluating the comps, the most important thing is to get your emotions out of the equation and reason like a appraiser. That is because ultimately when you sell the house, it will not matter about the contract value. What matters most is the improved value.
The best place for finding logical comps is on the MLS. That is also another reason for getting yourself licensed and having access to the crucial MLS. If you cannot access the MLS then, you can find a licensed real estate agent who have the access to MLS and who can provide that information. You can also utilize online tools to make informed decisions when buying dilapidated properties to renovate and sell at a profit. There are plenty of independent home valuation websites like Trulia.com, Zillow.com and RealEstateABC.com which can help you estimate the value of a home. Although these sites can give you a general idea of what a house is worth, you should never rely on just one site. It is better to visit a few of them and make sure the estimates agrees. Also keep in mind that these are automated system and can’t account for variables a human could easily identify by doing pulling comps and doing a comparative market analysis by hand