4 Industry Secrets To An Accurate After Repair Value

4 Industry Secrets To An Accurate After Repair Value


Numbers hold the key to any successful rehab deal. The more accurate you are with your estimates, the higher your profits will be. One of the most important numbers you will estimate is the after repair value (ARV). This is the value that you think the property will be worth after you are done with your repairs and upgrades. If you overestimate this number, your property will sit on the market for a very long time. The best investors can walk into a property and within minutes assign a value based on their knowledge of the market. If you are not at that point yet, here are a few tips to help in the process:

1. Get a Good Team in Place: Real estate investing requires a solid team around you. Even though you are the final decision maker, you should lean on the input of others. Your realtor and contractor are the two key team members that will help determine your ARV. This number starts with an estimation of the work needed and the costs associated. Even if you are a seasoned investor, a contractor will have a better idea of all the costs. Little things on rehab deals can quickly add up. Not everything that you do will give you equal value. A good contractor knows the best ways to stretch your dollar. Your realtor will tell you if your numbers are realistic. You don’t have to do everything yourself on your rehab. Start with getting a good team in place.

2. Review Multiple Estimates: If you have a solid relationship with a contractor, you are ahead of the game. Getting to this point usually takes time and several deals. If you don’t have a contractor on your team, you need to get a few different estimates. As a rule of thumb, you should nail down three good contractors and go from there. Once you go over three contractors, everyone will sound alike, and you will end up doing more harm than good. Be as open and honest with them as possible. Explain the deal and what you are looking for. Ask for written estimates detailing all the costs and work associated. This way you can compare apples to apples with other estimates. Price is important, but it may not be the most important thing. You want someone that will be at the house when they say they will. The longer it takes to finish the work the more your bottom line is reduced. After reviewing your estimates it will give you a good idea of your budget and an idea of the finished product. The finished product will lead to your value.

3. Know Your Market: Before you do any work it is important that you know your market. Knowledge of the market will give you a good idea of what work you should do. Not all improvements you do make sense for the neighborhood. Improvements in San Diego will differ from those in Birmingham. All buyers like nice things, but the market may not give you the return you are looking for. A pool that takes up half of the back yard may not be the best idea. You want to make your upgrades and finishes nice, but you need to make them in line with your market. A real estate agent will help narrow down a specific value. You need to have a basic idea of the neighborhood before you even make an offer. The market the property is located in is more important than the work you put in. If you don’t know your market, you will have a tough time determining the value.

4. Listen to Your Realtor: Even though you may have a good grasp of the market, your realtor has a better understand of local property values. Getting estimates and knowing your market is all done to determine the value. There is a lot that goes into this number. Going off of one sale a few streets over will not give you an accurate value. Your real estate agent will look at comparable sales that are similar to your property. They will look at past sales and current listings in the last 90 days within a mile of your property. This is the information that the people that will buy the property look at. You may do great work, but the numbers don’t lie. Your real estate agent will give you an honest assessment of where they think the value will be. In most cases, they will be right. If you ignore their advice and lean towards the high side of the market, you will end up disappointed.

With any ARV estimate, you should be conservative in your approach. You may hit the high side of the market, but there is always the chance that you don’t. If you aren’t satisfied with the profits by selling at a lower ARV number, the deal may not be for you. Your ARV is the number where profits are made. Everything else you do is unimportant unless you can sell for the price you expect. Take time before you make any offer and look at the right numbers. If you have a good team in place, you need to listen to their expertise. Estimating the ARV is the most important piece of the rehab puzzle.

Read more: http://www.fortunebuilders.com/4-industry-secrets-to-an-accurate-after-repair-value/

Comments

  1. Andhros / Enquanto você não abrir o saco e dizer quem é vai ficar tudo no mesmo saco mesmo…Qualquer um que fez ensino médio sabe que evolução não é “linear”, nem que seja SÓ por causa daquelas “árvores” de evolução, ou a “árvore da vida”.Gostei deste comentário ou não: 2

  2. The new Zune browser is surprisingly good,but not as good as the iPod’s. It works well, but isn’t as fast as Safari, and has a clunkier interface. If you occasionally plan on using the web browser that’s not an issue, but if you’re planning to browse the web alot from your PMP then the iPod’s larger screen and better browser may be important.

  3. – OK, I shouldn’t think he would have grabbed the iPad just to avoid being photographed. Grabbing it to prevent being smacked is fine.@Dustin – Wasn’t Aaron non-anonymous at that point anyway? Still doesn’t justify Darleen’s stance of a total ban of photography in the courthouse being “obviously” justified, anyway.But since Aaron wasn’t trying to prevent himself being photographed, and it’s apparent Kimberlin lied about the iPad incident, the courthouse electronics ban is a subject for a different 1st Amendment post.

  4. i read many blogs but i must say your writing style is top notch.you make other bloggers look like kids.keep up your original writing style.

  5. With havin so much content do you ever run into any problems
    of plagorism or copyright violation? My site has a lot of unique content I’ve either authored myself or outsourced but it appears a lot of it is popping
    it up all over the web without my agreement.
    Do you know any methods to help reduce content from being ripped off?
    I’d definitely appreciate it.

  6. check says:

    There is noticeably a bundle to know about this. I assume you have made certain nice points in functions also.

  7. Hello, you used to write fantastic articles, but the last several posts have been kinda lackluster… I miss your great articles. Past several posts are just a little out of track!

  8. magnificent post, very informative. I wonder why the other experts of this sector do not notice this. You should continue your writing. I am confident, you’ve a huge readers’ base already!

  9. zobacz says:

    you are really a excellent webmaster. The website loading speed is incredible. It sort of feels that you are doing any unique trick. Moreover, The contents are masterwork. you have performed a fantastic activity on this topic!

  10. there are wall mirrors where at edges are made up of anodized aluminum and they do not stain too much,

  11. You created some decent points there. I looked on the net with the issue and located most people is going in addition to together with your website.

  12. link says:

    Howdy, i scan your blog sometimes and that i own the same one and i was just wondering if you get a lot of spam comments? If so how do you forestall it, any plugin or anything you’ll be able to advise? i buy abundant lately its driving me mad so any assistance is very much appreciated.

  13. strona says:

    Thanks a lot for your interesting article. I have been searching for such message for a very long time. Not all your content is completely clear to me, even though it is definitely interesting and worth reading.

  14. I just added this blog site to my feed reader, great stuff. Can not get enough!

  15. I am really impressed with your writing abilities neatly as with the layout on your blog. Is that this a paid subject matter or did you modify it your self? Anyway stay up the excellent high quality writing, it is uncommon to see a nice blog like this one today.

  16. Good – I should certainly pronounce, impressed with your web site. I had no trouble navigating through all the tabs as well as related information ended up being truly simple to do to access. I recently found what I hoped for before you know it at all. Reasonably unusual. Is likely to appreciate it for those who add forums or anything, web site theme . a tones way for your customer to communicate. Excellent task.

  17. 気になるお肌のザラザラの原因は、古くなった角質かもしれません。年を取るとともに衰えてしまったターンオーバーが古くなった角質を蓄積してしまっている。

    紫外線によってターンオーバーの周期が乱れて角質が厚くなってしまっている。乾燥やアクセサリーなどの金属擦れによって、素肌が傷んで角質が溜まっている。上記に挙げる以外にも様々な事情で古い角質が取れずにイボになることがあるのです。

    イボのある顔・首元では、不潔に見えたり老けて見えるだけでなく、その後、ニオイや肌トラブルになってしまう危険性も!

    ブツブツできてしまったイボの正しい治療方法は、ズバリ顔のイボを取るクリームを正しく使用することです。薬剤といっても、必ず医薬品に頼る必要はありません。今は首元や顔のイボを専用にケアできる化粧品も多数販売されています。

  18. zródla says:

    Great post. I was checking continuously this weblog and I am impressed! Very useful information specifically the last section I maintain such info a lot. I used to be seeking this certain info for a very long. Thanks and best of luck.

  19. link says:

    ???, ??? ???? ????? ??? ???? ? ??????? ?? ????? ???? ????? ????? ????? ????? ?????? ??????.

  20. zródlo says:

    The style that you write make it really comfortable to read. And the template you use, wow. It is a really good combination. And I am wondering whats the name of the design you use?

  21. depannage informatique avignon

  22. My brother suggested I might like this website. He was entirely
    right. This post actually made my day. You cann’t imagine simply how much time
    I had spent for this information! Thanks!

  23. For most up-to-date information you have to go to see
    internet and on web I found this site as a finest site for most recent updates.

  24. I could not resist commenting. Very well written!|

  25. Ꮤhat’s up, its good post concеrning media
    pгint, wе allⅼ be familiar ѡith media іs a fantastic sourcе of
    facts.

  26. kliknij says:

    But I see that the original post was published more than two years ago. Was there are any update for this elsewhere on the page?

  27. very nice post, i certainly enjoy this web site, persist with it

  28. Youre so cool! I dont suppose Ive read something like this before. So nice to locate somebody by authentic applying for grants this subject. realy thanks for starting this up. this site is a thing that’s needed on the web, somebody after a little bit originality. helpful purpose of bringing a new challenge for the web!

  29. My husband and i felt really thankful when Louis could complete his researching through the entire ideas he grabbed out of your web pages. It is now and again perplexing to simply choose to be offering techniques which often many people might have been selling. And we also do know we now have the writer to be grateful to because of that. All the explanations you have made, the easy blog navigation, the relationships your site assist to instill – it’s mostly fantastic, and it’s really helping our son in addition to our family do think that article is interesting, and that’s exceedingly fundamental. Many thanks for the whole thing!

  30. Please keep on posting such quality storys as this is a rare thing to find these days. I am always searching online for articles that can help me. watching forward to another great blog. Good luck to the author! all the best!

  31. These paths and paths twist with the beautiful forests
    and ridges of Gorges State Park, Dupont State Woodland and Pisgah National Forest Maps and
    also guidebooks are suggested so you could figure out whether your walk in the timbers
    will involve camping equipment and a serious
    climb or a picnic basket and also a number of hrs on a Saturday afternoon.

  32. You will find on our sites unique no deposit bonuses,no deposit casino , no deposit poker , no deposit bingo , no deposit forex and all the top deposit bonuses

  33. Nice post. I discover some thing more challenging on diverse blogs everyday. Most commonly it is stimulating to read content from other writers and use a little something from their site. I’d prefer to use some while using content on my own weblog regardless of whether you do not mind. Natually I’ll provide link on your internet weblog. Many thanks sharing.

  34. I’m very happy to read this. This is the type of details that needs to be given and not the random misinformation that is at the other blogs. Appreciate your sharing this greatest doc.

  35. Wohh just what I was searching for, thanks for posting .

  36. Its excellent as your other articles : D, regards for posting .

  37. I’d need to consult you here. Which isn’t something I do! I quite like reading a post that could make people think. Also, thanks for allowing me to comment!

  38. Hello There. I found your blog using msn. This is an extremely well written article. I’ll make sure to bookmark it and return to read more of your useful info. Thanks for the post. I’ll definitely return.

  39. I’d have to examine with you here. Which isn’t something I usually do! I take pleasure in studying a publish that can make individuals think. Additionally, thanks for permitting me to comment!

  40. We stumbled over here by a different web page and thought I should check things out. I like what I see so now i’m following you. Look forward to looking over your web page yet again.

  41. my side says:

    You have observed very interesting points ! ps nice website .

  42. i am a movie addict and i watch a lot of movie in just one night, the greatest movie for me is Somewhere In Tome~

  43. grasp your rss as I can not in finding your email subscription hyperlink or newsletter service. Do you?ve any?

  44. my link says:

    I’m not that much of a internet reader to be honest but your blogs really nice, keep it up! I’ll go ahead and bookmark your website to come back down the road. Many thanks

  45. Wonderful paintings! That is the kind of info that should be shared across the net. Shame on the seek for not positioning this put up higher! Come on over and seek advice from my site . Thanks =)

  46. ehternet cables are still the ones that i use for my home networking applications::

  47. Thank you for the well-written blog post. I greatly treasured your generosity and help you offer through the totally free tips on your blog, specially the ones provided through this article. I know Britta would love to read more of your blog post. I’ve sent your website url to her. We love your thoughtfulness during this difficult time.

  48. Youre so cool! I dont suppose Ive read anything in this way before. So nice to discover somebody with a few original thoughts on this subject. realy appreciation for beginning this up. this web site is something that is required over the internet, a person with a little originality. useful job for bringing something new to the web!

  49. moja strona says:

    Greetings! I know this is kinda off topic but I’d figured I’d ask. Would you be interested in trading links or maybe guest authoring a blog article or vice-versa? My site addresses a lot of the same subjects as yours and I believe we could greatly benefit from each other. If you are interested feel free to send me an e-mail. I look forward to hearing from you! Wonderful blog by the way!

  50. zródlo says:

    Thank you, I have recently been looking for details about this subject for ages and yours is the best I have found so far.

  51. With elegant graphics and huge prizes up for grabs, you’ll be treated
    like royalty in our new game Regal Riches by Real Time Gaming
    Available at Silver Sands Casino Get 50 Free Spins and win up
    to Euro 25Use coupon code: 50RICHES

    T&C Max cash out is Euro 25, Wagering requirement Euro 25.

    This promotion is valid until 31.August.2013
    Good Luck

  52. Hey There. I found your blog the use of msn. That is a very smartly
    written article. I will make sure to bookmark it and come back to read more of your
    helpful information. Thank you for the post. I will certainly return.

  53. My brother recommended I would possibly like this website.
    He used to be entirely right. This post truly made my day.
    You cann’t believe just how so much time I had spent for this info!
    Thanks!

  54. This site is known as a stroll-by way of for all the data you wished about this and didn’t know who to ask. Glimpse here, and also you’ll undoubtedly uncover it.

  55. very good put up, i certainly love this web site, keep on it

  56. Oh my goodness! a tremendous article dude. Thank you Nonetheless I am experiencing issue with ur rss . Don’t know why Unable to subscribe to it. Is there anyone getting an identical rss drawback? Anybody who knows kindly respond. Thnkx

  57. It’s onerous to search out knowledgeable individuals on this matter, however you sound like you recognize what you’re speaking about! Thanks

  58. link says:

    I like this website its a master peace ! .

  59. I enjoy meeting utile info, this post has got me even more info! .

Leave a Reply

Your email address will not be published.

Top