Beginner6 min read

What Is ARV?

After-Repair Value is the single most important number in a flip or BRRRR. Get it right and the deal works; get it wrong and everything downstream breaks.

ARV (After-Repair Value)is what a property will be worth once it's fully renovated — its retail market value in fixed-up condition. It is notwhat you pay, and it's not today's as-is value. It's the finish-line number that every other number in the deal is measured against.

Why ARV controls the whole deal

●Your offer: investors back into a maximum purchase price from ARV (see the 70% rule below).
●Your rehab budget: spending more than the market rewards is wasted money — ARV tells you how far to go.
●Your financing: hard-money and refinance lenders size loans against ARV (e.g., 70% of ARV).
●Your exit: flip resale price and BRRRR refinance amount both depend on hitting ARV.

How to estimate ARV with comps

ARV is built from comparable sales (“comps”) — recently sold properties similar to yours, in fixed-up condition. Pull comps that are:

●Recent — sold within the last 3–6 months.
●Close — ideally within ~0.5–1 mile, same neighborhood, no major dividing lines (highways, school zones).
●Similar — comparable square footage (within ~20%), same bed/bath count, similar age, lot, and style.
●Sold, not listed — actual closed prices, not asking prices (sellers ask for anything).

Take the price-per-square-foot of the best comps, apply it to your subject's square footage, and adjust for differences (an extra bath, a garage, a bigger lot). The result is your ARV estimate.

The 70% Rule

A fast first-pass filter for flips: Max offer ≈ (ARV × 0.70) − rehab cost. The 30% buffer covers holding costs, selling costs, and profit. It's a screening tool, not gospel — tight markets, cheap properties, and experienced operators adjust it — but if a deal can't pass the 70% rule, look hard before proceeding.

Common ARV mistakes

●Using active listings or pending sales instead of closed comps.
●Reaching for comps from a nicer (or worse) neighborhood to justify a number you want.
●Ignoring condition — comparing your future rehab to comps that weren't actually renovated.
●Over-improving past the neighborhood ceiling: a $400k finish in a $250k area returns nothing.
●Falling in love with the deal and inflating ARV to make the math work.

Plug your ARV, purchase price, and rehab into the Deal Underwriter to see profit, margin, and the 70%-rule offer.Run the numbers →

Key takeaways

✓ARV is the renovated retail value — the finish-line number, not what you pay.
✓It drives your offer, rehab budget, financing, and exit all at once.
✓Build ARV from recent, nearby, similar, SOLD comps — adjusted for differences.
✓The 70% rule (ARV × 0.70 − rehab) is a quick flip screen, not a hard law.
✓Don't inflate ARV to save a deal, and don't over-improve past the neighborhood ceiling.

Educational information only — not legal, tax, or financial advice. Real estate involves risk; verify numbers and consult licensed professionals before making decisions.

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