Understanding how to determine what the ARV is the most important skill you can have a real estate investor.
This is Dave at F8 Real Estate Pros I buy and sell properties virtually using just my laptop and phone to close deals fast. I need to be able to find the ARV for a property fast without seeing the property in person.
In this?video, I am going to quickly explain what ARV means and how to quickly find it on any property as a Real Estate wholesaler.
What Does ARV Mean?
ARV stands for the After Repair Value of a piece property.
This is what the property will be worth and what it can sell for once it is fully renovated. This is determined by getting what is known as the comparable property sales for that area. We called this Comps for short. (comps)
This number is very important because this is what we need to base our offer for the house on.
You do not want to buy a house for $500,000 dollars when the same type of houses in the neighborhood are selling for only $250,000 dollars.
As a real estate wholesaler, we have to figure out the ARV fast and easy because a lot of times we are not located in the city we have the opportunity to buy properties in.
Two Ways To Determine ARV
Option 1: One way to get the ARV is if you have access to the MLS (Multi Listing Service) or have a real estate agent to see what the recent comp sales were for that area.
Option 2: Since many Real estate investors and wholesalers don?t have direct access to the MLS, you can use other online real Estate services to quickly get the ARV. And it?s Completely FREE.
Get The ARV in 3 Easy Steps…FREE
The way that this is done is very simple.
For example, someone calls you to buy their house and it is 1500 square foot with 3 bedrooms and 2 baths.
1: Using Zillow.com we put in the property?s address.
2: Next, we see what price similar houses have sold for in that area in the past 30, 60, 90 days and sometimes up to 12 months or more if we need to.
3: Using this information we find that similar (or comparable) houses in that immediate area are selling for $330,000 dollars. That will be the ARV or After Repair Value number for that house.
That’s all there is to it. It is not hard and you can determine the ARV within minutes without spending a lot of money.
Practice online with different addresses to get their ARV.
Bonus Tip:?If you use Zillow for comps, please do not use their Zestimate number to determine the comps. You will be way off. Only look at the recent sales.
Hope this helps and if you have any questions regarding this, please leave a comment.