DealUW Appraisal Rules

Professional-grade underwriting standards built into every analysis.

Comp Selection Rules

How DealUW filters comparable sales

180-Day Maximum

180 days

Only comps sold within the last 180 days. Older comps get a 10-20% ARV reduction to account for market correction.

+/- 250 Square Feet

250 sqft

Comps must be within 250 sqft of the subject property. A 1,500 sqft home shouldn't be compared to a 2,000 sqft home.

Same Property Type

Exact match

Ranch comps for ranch homes. 2-story comps for 2-story homes. Never mix property types — they trade differently.

No Major Road Crossings

Same side

Comps must be on the same side of major roads. Crossing a highway or arterial road changes the neighborhood.

+/- 10 Year Build Date

10 years

A home built in 2005 shouldn't be compared to one built in 1965. Systems, layout, and appeal are fundamentally different.

+/- 2,500 Sqft Lot Size

2,500 sqft

Lot size matters. A home on a quarter acre shouldn't be compared to one on a full acre.

Same Subdivision Preferred

Preferred

Same subdivision comps are always best. It's better to leave the subdivision for a better comp than to time-travel with an old one. Different subdivision comps are flagged but not automatically disqualified.

Feature Adjustments

Dollar adjustments applied when comps differ from the subject

Feature	Adjustment	How It Works
Bedroom	+/- $10K - $25K	Scaled by price range: $10K (under $200K), $15K ($200-400K), $25K (over $400K)
Bathroom	+/- $10,000	Per full or half bath difference between subject and comp
Garage	+/- $10,000	Per garage bay difference. No garage vs 2-car = $20K adjustment
Carport	+/- $5,000	Applied when one property has a carport and the other doesn't
Pool	+/- $10,000	Applied when one property has a pool and the other doesn't

Traffic & Commercial

Adjustments for properties with road or commercial exposure

Under $500KFlat dollar amounts

Siding

Backs to commercial / busy road

-$10,000

Backing

Backs to something undesirable

-$10,000

Fronting

Fronts major road / commercial

-$10K to -$20K

Over $500KPercentage of ARV

Siding

Backs to commercial / busy road

-10%

Backing

Backs to something undesirable

-15%

Fronting

Fronts major road / commercial

-20%

Special Rules

Additional adjustments that protect your margins

Basement / Guest House

Valued at 50% of $/sqft

Below-grade and detached living space is never worth the same as primary square footage. DealUW automatically calculates effective square footage at 50% value for basements and guest houses.

Example

1,500 sqft main + 800 sqft basement

= 1,900 effective sqft

Aging Comp Penalty

-5% for comps 150-180 days old

Comps approaching the 180-day limit are less reliable. DealUW automatically applies a 5% penalty to comps aged 150-180 days and flags comps at 120+ days as aging.

0-120 daysNo penalty

120-150 daysWarning flag

150-180 days-5% penalty

180+ daysDisqualified

The 70% Rule

The foundation of every wholesale deal

Maximum Allowable Offer

MAO=(ARV×70%)−Repairs

Example Deal

ARV (After Repair Value)$250,000

x 70% Rule$175,000

- Estimated Repairs$35,000

MAO (Your max offer)$140,000

The 30% margin covers your assignment fee, buyer's profit, closing costs, holding costs, and a cushion for the unexpected. This is the industry standard that keeps deals profitable and protects everyone in the chain.

These rules are based on professional appraisal standards and years of wholesaling experience.

DealUW applies them automatically to every analysis.