You need to calculate the $/sqft for the comps first.
it is based on $/sqft, not sales price
With high end homes, there is more margin for opinion of value
This formula is used more for smaller homes, when establishing the value for luxury homes, you need to consult an appraiser and an auctioneer to get their opinion of what they think the house will sell for at a Live Auction they will you know what you can settle for on the short sale.
$6,580,000 = 4170sq $/sqft = 1577
$3,450,000 = 3850sq $/sqft = 896
$2,800,000 = 3510sq $/sqft = 797
$2,250,000 = 2360sq $/sqft = 953
use 896 because this is 3rd highest comp
896 x sqft of subject property (not average of comp sgft)
Minus $12k for repairs (3/3)
ARV is not your offer price. ARV is what the property will appraise for. you want to figure it will sell for quickly 80% of what its worth (if in very good condition- in your example it is in very good condition because 12K in repairs would cover paint on a home this big)
Short Sale Offer Price is the average of 3 LOWEST comps with highest DOM minus repairs from licensed contractor multiplied by 80%
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