Estimating home repair costs when flipping houses

Buying a property can be a tricky task. Whether it is residential or commercial property, it involves proper property market knowledge to ensure safe investment. The property prices depend on the factors of demand and supply. Besides the economical approach, the other factor which is important to determine the price of a property is After Repair Value (ARV).  After Repair value is very important to determine before making investment in property market.

What is After Repair Value?

After repair value is the new value of a property after the property has passed a series of repair process. The repairs can include fixture and fittings such as adding new room, bathroom or changes related to the property layout.

How to determine ARV in real estate?

After Repair Value is determined by an ARV appraisal and an appraisal is the market value which is determined by a professional and licensed appraise. The appraiser will determine the most accurate valuation of the property. The appraise will short list all the repairs and compare it with the properties of the same neighborhood to come up with the most accurate after repair value results.

Related Articles: House Repairs You Need to Make Before You Sell

For the investors who are willing to make decent amount of profit on properties are offered the 65% real estate rule.  It is calculated by multiplying the current value of a property with 65% and subtracting the property repairs and the assignment fees. Therefore, the price which is determined after the 65% real estate what every investor is looking for. The property price is filliped for the investor so that he can make decent amount of profit.

Our company works with a number of local contractors. We will provide up to four estimates from local contractors. Our services can help the property investors in a cost effective and reliable way. By using our services the property investors can find the most affordable contractors which can save both their precious time and money.  We don’t charge a dime! Our local contractor sourcing service is 100% free. We offer the most affordable contractors so that the investor should make a larger profit once they flip the house.

 

 

 

 

 

 

 

 

 

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