I am having some trouble determining what the difference is between Fair Market Value (FMV) and After Repair Value (ARV). Just need clarification as I see FMV as what the property is worth As-Is and ARV as what the property is worth once fixed up. Is that correct? If so, how is the FMV determined?
The other piece I need to understand is what the best solution is to making offers on REOs? Is the ARV formula better (ARV * XX% - Repairs - Wholesale fee) or FMV (FMW * XX%)?
Thanks in advance for the help.