So you’ve found a potential real estate deal.
Finally!!
You spent months putting out bandit signs, sending letters, knocking on doors and getting cursed out.
Now What?
You have to find out how much the property will be worth once it’s fixed up.
(your After Repair Value or ARV)
“What have homes in the area recently sold for that are similar in
features?”
Rule # 1: Only Use Comps That Are Similar in Features
This includes the style of home, square footage, amount of beds/baths
Always choose the most relevant comps 1st
Rule # 2: Use the Most Recently Sold Comps Available
Start with 90 days from today's date
If you don't have enough there, increase your search 90 days at a time
Rule # 3: Use Houses that are Close in Proximity
In DC, 0.25 - .5 miles
Stay in the neighborhood (subdivision)
Avoid crossing major roads (Georgia Ave, New Hampshire Ave)
5 Tips to Becoming an ARV Ninja
Get 5-6 Relevant Comps
Be Unbiased (you don’t NEED to buy, but they need to sell)
No Comps are the same as bad comps
Exclude distressed comps
Do NOT Speculate
At DC Invest, we have many Real estate licensees.
That means we have access to the good stuff: The Multiple Listing Service.
Redfin or Zillow are fine if you're just starting out but not accurate enough to rely on for your business.
We recommend building a relationship with a real estate agent or reaching out to us at info@dcinvestllc.com for help.