Nathan Payne canceled 39 contracts in a row using the same pricing formula across different cities. He learned that comps and ARV estimates don't work because every market, street, and neighborhood has different buyer behavior. There's no universal formula for what people will actually pay.
If you're guessing off of even off of comps of what the ARV is worth, you could be— we could see it completely differently from a buyer that's willing to buy the property. You could see it way too high, you could see it way too low. So the problem with what you're doing is you're trying to guess what people will pay for the property when you have no idea, especially if you're brand new. I was stuck in that model for a long time. It caused me to cancel 39 contracts in a row when I went nationwide. I had no idea what I was doing because I was working in multiple cities throughout the United States, and I found out that every city is completely different. There's not a blanket formula that's going to allow you to know what buyers would be willing to pay for the property, because every street, every city, every area all over, even in the same state, is different.
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