How do you calculate ARV?

Find 3–6 recently sold, comparable renovated homes near the property, adjust their prices for differences (extra bath, garage, square footage), and take a supported average. That figure is your estimated after-repair value.

What's the difference between ARV and market value?

Market value is what a property is worth in its current condition. ARV is what it will be worth after renovation. Flippers buy at a discount to ARV, create the difference through rehab, and capture it at sale.

Why is ARV so important in flipping?

ARV anchors your maximum offer, your loan size, and your profit estimate. An inaccurate ARV makes every other number wrong, which is why it's considered the single most important input in a flip analysis.

Deal Analysis

What Is ARV? How to Estimate After-Repair Value

Get ARV right and the rest of the deal math works. Get it wrong and nothing else matters.

June 15, 2026 · 6 min read

Quick answer

ARV, or after-repair value, is what a property will sell for once it's fully renovated. You estimate it from recent sales of comparable, updated homes nearby — same neighborhood, similar size, beds, baths, and condition, sold within the last 90 days. Accurate ARV is the most important input in any flip analysis.

What ARV means

After-repair value is the projected resale price of a property after your planned renovations are complete. It's not the current "as-is" value and it's not what you hope to get — it's what the market has recently paid for comparable finished homes. ARV drives your maximum offer (via the 70% rule), your loan amount, and your profit projection, so everything downstream depends on it.

How to estimate ARV from comps

Pull 3–6 sold comps — actual closed sales, not active or pending listings.
Stay close — within about half a mile, ideally the same neighborhood and school zone.
Stay recent — sold within the last 90 days to reflect the current market.
Match the property — similar square footage, beds/baths, lot, and (critically) finished condition.
Adjust for differences — add or subtract value for an extra bath, a garage, or a finished basement.

Common ARV mistakes

Using as-is or distressed comps — you want renovated homes that match your finished product.
Cherry-picking the highest sale — average the comparable range, don't anchor on the top.
Crossing neighborhood lines — values can shift block to block; stay in the same submarket.
Using stale data — a comp from a year ago may not reflect today's prices.

When in doubt, estimate ARV conservatively. A slightly low ARV costs you a deal; an inflated ARV costs you money on the deal you do.

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Frequently asked questions

How do you calculate ARV?: Find 3–6 recently sold, comparable renovated homes near the property, adjust their prices for differences (extra bath, garage, square footage), and take a supported average. That figure is your estimated after-repair value.
What's the difference between ARV and market value?: Market value is what a property is worth in its current condition. ARV is what it will be worth after renovation. Flippers buy at a discount to ARV, create the difference through rehab, and capture it at sale.
Why is ARV so important in flipping?: ARV anchors your maximum offer, your loan size, and your profit estimate. An inaccurate ARV makes every other number wrong, which is why it's considered the single most important input in a flip analysis.