ARV Calculator — After Repair Value
Enter 2–5 comparable sales near your subject property. FlipIQ calculates the price-per-square-foot average and applies it to your property to estimate ARV.
Comparable Sales
What is ARV (After Repair Value)?
ARV — After Repair Value — is the estimated market value of a property after all repairs and renovations are complete. It's the single most important number in any fix-and-flip deal because everything else (your max offer, your rehab budget, your expected profit) flows from it.
If you overestimate your ARV, you'll overpay for the property or overspend on rehab and end up with little to no profit. Experienced flippers are conservative — they'd rather underestimate ARV and be pleasantly surprised than the other way around.
How to Calculate ARV
The most reliable method is the price-per-square-foot (PPSF) approach using comparable sales (comps):
- Find 3–5 recently sold properties similar to yours (same neighborhood, similar size, similar condition post-rehab)
- Divide each sold price by its square footage to get the price-per-sq-ft
- Average those PPSF figures
- Multiply that average by your subject property's square footage
For example: if three comps sold at $175, $185, and $190 per sq ft, the average is $183/sq ft. A 1,400 sq ft subject property would have a suggested ARV of $183 × 1,400 = $256,200 (round to $255,000–$260,000).
ARV vs. "As-Is" Value
The as-is value is what the property is worth today, in its current condition. ARV is what it will be worth after repairs. The gap between the two — minus your rehab cost — determines your profit opportunity. A good rule of thumb: your all-in cost (purchase + rehab + holding + closing) should be no more than 70–75% of ARV.
Common ARV Mistakes
- Using active listings as comps. Only use sold properties — listed prices are asking prices, not what buyers actually paid.
- Ignoring recency. Markets move fast. Use comps sold within the past 90 days if possible, 6 months maximum.
- Ignoring condition. Your comps should reflect the finished condition you're targeting, not distressed properties.
- Using too large a radius. Stick to the same neighborhood or subdivision. A mile can make a significant difference in value.
Frequently Asked Questions
How many comps do I need to calculate ARV?
Aim for at least 3, ideally 5. One or two comps leave too much room for error — a single outlier sale can skew your estimate significantly. With 3–5 recent comps you'll get a reliable range to work from.
What if I can't find comps close enough to my property?
Widen your radius slightly, go back further in time (up to 12 months), or consult a local real estate agent for a CMA (comparative market analysis). If comps are genuinely hard to find, that's also a signal the market in that area may be illiquid — itself a risk worth factoring into your deal.
Should I adjust comps for differences in size, age, or features?
Yes, in a formal appraisal. For quick deal analysis, most flippers make mental adjustments (e.g., a comp with a 2-car garage might justify +$8K vs. a comp without). The PPSF method naturally handles size differences as long as you use similar-sized properties.
How is ARV different from appraised value?
An appraised value is a formal opinion from a licensed appraiser used by lenders to underwrite loans. ARV is an investor's estimate made pre-purchase to determine deal viability. When you close and get a hard money loan, the lender will order their own appraisal — your ARV estimate should be close to that if your comps are solid.