What After-repair value (ARV) means
ARV should describe a specific finished property on a realistic completion date. It is not the highest nearby sale, an automated estimate copied without review, or the asking price you need to make the deal work.
Choose comparable sales with similar location, property type, size, bed and bath count, lot, quality, and recency.
Adjust for material differences and keep a range until the scope and market evidence support a narrower conclusion.
ARV example
- Adjusted comparable indications: $315,000, $322,000, and $318,000
- Subject scope matches the renovated quality of the comparables
Result: The evidence supports an approximate $315,000-$322,000 range; a $318,000 base case can be stress-tested below that range.
When investors use it
- Underwriting a fix and flip
- Modeling BRRRR refinance proceeds
- Calculating a wholesale buyer's maximum price
- Deciding whether renovation creates enough value
Common mistakes
- Selecting comps only because they support the target
- Comparing renovated sales with a scope that will not reach the same quality
- Ignoring market movement during a long project
- Using price per square foot without property-level adjustments
Frequently asked questions
Is ARV the same as an appraisal?
No. Investor ARV is an underwriting estimate. A lender's appraisal is an independent opinion performed under the lender's requirements.
How recent should ARV comps be?
Use the most recent credible sales available, then widen the search only when the market lacks close matches. Recency must be balanced with similarity.
Should ARV be one number or a range?
A range better reflects uncertainty. Use a documented base case plus downside and upside values in the financial model.
This guide is educational and does not provide investment, lending, tax, legal, or appraisal advice. Verify inputs and requirements for the specific property, lender, and jurisdiction.
Put the metric inside a complete deal.
PropLurk keeps acquisition inputs, financing, expenses, returns, and the decision record together.