ARV Calculator: After-Repair Value From Comps
After-repair value (ARV) is what a home should sell for once renovated. This calculator averages the price per square foot of renovated comparable sales and multiplies it by the subject property’s square footage, then shows the range the comps support.
How the calculation works
- Divide each comparable sale’s price by its square footage to get price per square foot.
- Average those figures, so one unusual sale does not decide the answer on its own.
- Multiply the average by the subject property’s square footage.
- Read the range: the lowest and highest price per square foot times the subject’s size. A wide range means the comps disagree and need a closer look.
Questions
How many comps do you need for ARV?
Three to five recent sales of similar renovated homes nearby is the usual target. Fewer than three makes the estimate fragile; more only helps if they are genuinely similar.
Is price per square foot accurate enough?
It is a fast first estimate that works best when the comps are similar in age, layout and condition. Adjust by hand for big differences such as an extra bathroom, a garage or a much larger lot.
Which sales should I leave out?
Leave out distressed, as-is and investor purchases, and any sale far from the others without an explanation. ARV should reflect what a regular buyer pays for a renovated home.