How Real Estate Investors Research Local Comps for ARV

Investors must have fair and accurate comps to determine the after repair value (ARV). You’re actually dealing with two different processes here that blend together.

Comps causing confusion for most sellers

Recent comparable sales, often called “comps” for short, are causing a great deal of confusion for sellers. RIS Media reports that the Quicken Loans Home Price Perception Index shows that homeowners on average price their homes two percent higher than the valuation of professional appraisers.

Skip the Prelisting Appraisal; Hire the Appraiser as a Consultant

Should a home seller get a pre-listing appraisal? Only if its usefulness is kept in context, otherwise, it’s likely to be a waste of money. As both an active certified appraiser and associate broker I always try to find why the question was asked before answering it. Many times, having an appraiser as a “consultant” is far better than having them complete just an appraisal.

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