What Is The ARV &amp; Why Is This Number Super Important
[{"id": "e698a4o", "text": "Any time anyone just says to \u201caverage them out,\u201d meaning average the sale prices, it\u2019s a clear sign that they don\u2019t understand market value. Values should never be done by averaging. The only way that an average is relevant is if the properties are identical with the same location, and this does not happen in the real world. Not even in cookie cutter subdivisions since original buyers make different choices in home model, finish levels, upgrades, remodels, landscaping, lot size and shape, etc. each of which can impact value. This doesn\u2019t even take into account traffic patterns in a subdivision, view amenities, water flow or other locational factors. When you\u2019re not dealing with a subdivision, location factors are amplified; is the home at the end of a cul-de-sac? Is it on or near a trafficked corner? How close is it to a school and will this affect traffic in mornings and afternoons?\n\nAll of these are reasons that averages are a poor way to even estimate values. \n\n\nI didn\u2019t make it past the first 70 seconds of your video because of this basic error. ", "replies": [{"id": "e69as4a", "text": "Averages are an easy way to communicate value, and by selecting relevant comps, and applying a premium / discount, you can make averages more relevant.\n\nIt\u2019s easy to say they aren\u2019t appropriate, but if you\u2019re selling a property, I guarantee you that the broker is using them.  Simply discounting even the notion of an average is very elitist imo, and alienated potential non sophisticated buyers.  \n\nSaying you didn\u2019t make it past 70 seconds is fine, but you also come off as arrogant.  ", "replies": [{"id": "e69ky9m", "text": "Maybe I just don\u2019t like the idea that anyone can do an appraiser\u2019s job by averaging sale prices. My job is way more complex than that and I don\u2019t appreciate people making light of it. Call it arrogant if you want to, but I have 16 years of experience b my profession, what experience does she have?", "replies": [{"id": "e69m1l5", "text": "I don't disagree, but anyone who does real estate knows that appraisal isn't just taking an average.  The internet and a cell phone gives anyone a soap box, even you and me.", "replies": [], "depth": 4}], "depth": 3}, {"id": "e6aiczm", "text": "No - you come off as uninformed. ", "replies": [{"id": "e6aj1ht", "text": "Haha ok.  I guess that\u2019s why all appraisals include a comps section where they look at recent sales of similar property types.  Because looking at it means you\u2019re uninformed.  ", "replies": [{"id": "e6aj874", "text": "Comps - with adjustments - are not averages -\n\nI literally cannot make it easier for you to understand.", "replies": [{"id": "e6ajhkk", "text": "Didn\u2019t I say apply a premium or discount?  Maybe instead of making it easier for me, you should try to make it easier for you by reading the entire post.  ", "replies": [{"id": "e6akl10", "text": "Again - \n\nA comparable market approach in an appraisal is NOT an average, will never be an average, talking about comps and saying they are averages is as uninformed as you can get.\n\n", "replies": [{"id": "e6amdfy", "text": "Whatever makes you feel better.", "replies": [], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "e69hy5n", "text": "Instead of averaging values, the comps should be adjusted like an appraiser would - look at the particular attributes of the home and adjust up or down for each to compare appropriately with the subject property. Heck, even a broker doing a CMA would do that. \n\nStill, she's talking about residential properties. Why is this here?", "replies": [], "depth": 2}], "depth": 1}]