Determining After Repair Value

What is after repair value or ARV? This is an estimated value that house flippers, wholesalers, or rental property owners use when evaluating a deal. For example: Say properties in a specific neighborhood are selling for $120,000 all fixed up. Then the ARV would be $120,000.

Where most people get this number wrong is they do not know how to look at similar properties online to determine the value. To find like-kind properties you need to be searching within a 1-mile radius (or smaller), with 300 sq ft, similar style house, and a similar amount of beds/baths. This will give you the closest estimate to what the property will be worth when it is all done.

What if it is a Rural Property?

Rural property is significantly more difficult to determine ARV. The types of questions you need to ask if how much are people paying for acreage? What about extra garages? Does it have any other amenities? Rural property can change drastically from house to house & you should be aware of this!

If you need help determining ARV on a property please reach out to us at 920-215-4201