What Is After-Repair Value (ARV)?
After-Repair Value (ARV) is the price a property should sell for once renovations are complete. It is the single most important number in a flip — it sets the ceiling every other number works backward from.
Try the After-Repair Value (ARV) calculatorHow After-Repair Value (ARV) is calculated
The most trusted method is price per square foot. Pull three to six recently sold, renovated homes near your property, divide each sale price by its square footage, average those figures, and multiply by your property’s post-renovation square footage. That product is your estimated ARV.
The closer your comparable sales are in size, age, condition, and location, the more reliable the result. Old or distant comparables widen the margin of error quickly.
Why ARV drives the whole deal
Once you have an ARV, you work backward: subtract your rehab budget, holding and selling costs, and target profit to find the most you can pay — the Maximum Allowable Offer (MAO). Overestimate ARV and every downstream number is wrong, which is how flips lose money.
Because ARV is an estimate, anchor it in current, verified comparable sales rather than a single rule of thumb, and refine it with a full Comparative Market Analysis (CMA) before you commit.
Frequently asked questions
What is the difference between ARV and current value?+
Current value is what the property is worth as-is, before any work. After-Repair Value (ARV) is what it will be worth once renovations are complete. The gap between them, minus your rehab and costs, is where flip profit comes from.
How many comparable sales do I need for ARV?+
Three to six recent sales of similar, renovated homes within about a mile is a good target. Fewer or older comparables mean a less reliable estimate.