Speaker 1: Hey, what’s up, you guys? Decided to go ahead and do a whiteboard for you, because I know that there’s a lot of people out there that are wondering what an ARV is or what is after repair value. Okay, so that’s what that stands for. If you ever hear the term, this is basically just in real estate, ARV is the after repair value.
Okay, so what is the after repair value? In our business, what we’re doing is we’re actually, we’re finding properties, we’re making offers, and then we are selling those contracts after we agree with an offer, we reach an agreement with the seller. With after repair value, what we’re doing is we are taking and saying, “Okay, we need to know how much this house is actually worth.” So what we’re going to do is we’re going to go to a place, and I’ll go do another video of places to go to actually find this information, but where I usually go is a place like Zillow. Once you type in the address of the property in Zillow, off to the right hand side on the computer part, not on the phone part, but on the computer part it’s going to have a list of properties that have recently sold that are civil. I use this.
Now, we’ll get a little bit deeper into what to do and how to figure out those, what they call comparables. But basically, if you’re looking for an ARV calculator right now, you can go looking for an ARV calculator most definitely, but what you’re really looking for is you’re looking for comparables. ARV, actually this is red, that’s what this needs. All right, so let’s make this really simple. ARV equals comparables, all right?They’re one in the same. If you’re trying to get an ARV, you need to find comparables. What are comparables? They are similar properties that sold, I say less than 60 days from them. That’s going to give you a really good judge of the market.
Now, sometimes it’s pretty tough to actually find them, find some. I mean, I did one last week where I go there, I go to Zillow, type into stuff, there’s like two comparables. In that case, what I had to do was zoom out and put in the filter data and try to find something that I could use. It’s kind of a challenge, it comes easily to real estate agents because they’re trained in how to do that. I’m still kind of developing the skill. But anyway, guys, that’s beyond this video. ARV equals comparables. I can’t think of a calculator you can actually use to calculate ARV, because you have to find three properties that are similar, and I usually average those sale prices together or just take the lowest one. I usually take the lowest one, because that’s where you want to stay when you’re doing your ARVs. So anyway, ARV is the after repair value, and ARV is comparables. Finding at least three similar properties and averaging those prices together or using the lowest. Thanks so much, guys. Talk to y’all soon.