One of the major components in a successful house flip is properly estimating your after-repair value. You can do great work on the property but if you are off the mark with your ARV the deal won’t be as successful as you anticipated. Experienced rehabbers understand that simply making improvements doesn’t always increase the value. Sure, improvements help but if there are few comps to support the value, you won’t sell for the number you have in mind. Estimating your ARV is more than just an educated guess. You need to examine every aspect of previous sales, current listings, value added and work you plan on doing. Once you break those items apart you should be left with a pretty good estimation of what you think you can list your home for. Here are five tips to help nail your next ARV estimate.
Your after-repair value estimate should be based on fact and not simply a blind guess. The closer you are to your value the higher your sales price will be and the more net profit you will realize.