ARV (After Repair Value)
ARV (After Repair Value) is the estimated market value of a property after all planned renovations and repairs are completed. It represents the projected "as-is" sale price once the home has been brought to its full potential in terms of condition, aesthetics, and market appeal. In fix-and-flip investing, ARV is the cornerstone underwriting metric. Investors use it to calculate potential profit by subtracting the purchase price, rehab costs, holding costs, and selling expenses from the ARV. Accurate ARV determination—typically through comparable sales (comps) of recently sold, renovated properties in the same neighborhood—is critical for assessing deal viability and securing financing. A realistic ARV helps prevent overpaying for the property or overspending on renovations, directly impacting flip profitability and risk management.
