What is ARV in real estate?
ARV, or after-repair value, is what a property is expected to sell for once it has been renovated to a typical market standard. Wholesalers and flippers use it to decide how much a deal can support.
ARV is an estimate, not a guarantee. It comes from recent sales of similar, renovated homes nearby, and changes with the condition of the comparable sales and the local market.
It is different from the as-is value, which is what the home is worth today in its current condition. The gap between them, less repairs and costs, is the opportunity.
Common mistakes
- Using the listing price or an automated online estimate as the ARV instead of recent renovated sales.
- Comparing against homes that are larger, newer or in a better location without adjusting for the difference.
- Assuming every sale was renovated. Check the listing photos before treating a sale as an updated comp.
- Rounding the ARV up to make a deal work. Buyers run their own comps and will walk away.
More questions
Is ARV the same as market value?
No. Market value is what the home is worth as it stands today; ARV is the estimated value after renovation. The difference, less repairs and costs, is the opportunity.
Can I use an online estimate as ARV?
Online estimates are a starting point, but they often miss condition. Use recent renovated sales nearby to set ARV.
How accurate does ARV need to be?
Accurate enough that a buyer running their own comps agrees with it. Overstating ARV is the fastest way to lose a buyer’s trust.