{"id":622,"date":"2026-07-25T01:00:20","date_gmt":"2026-07-25T05:00:20","guid":{"rendered":"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-how-to-estimate-arv-2026\/"},"modified":"2026-07-25T01:24:12","modified_gmt":"2026-07-25T05:24:12","slug":"after-repair-value-calculator-guide","status":"publish","type":"post","link":"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/","title":{"rendered":"After Repair Value Calculator: How to Estimate ARV (2026)"},"content":{"rendered":"<p class=\"lead\">Maria spotted a three-bedroom ranch in a Houston suburb listed at $190,000. The roof sagged, the kitchen hadn&#8217;t been touched since 1994, and the carpet was beyond saving. Her contractor quoted $62,000 to bring it to market standard. Before she made an offer, she needed one number: what will this house be worth once the work is done? That number is the after repair value \u2014 and without a reliable <strong>after repair value calculator<\/strong>, she had no basis for her offer price, her rehab budget, or her profit forecast.<\/p>\n<p>This after repair value calculator guide walks through every method professionals use to estimate ARV with an after repair value calculator, including two worked examples, a breakdown of the most common calculation mistakes, and links to free tools \u2014 including our after repair value calculator \u2014 you can use today.<\/p>\n<p>    <!-- TOC --><\/p>\n<div class=\"toc\">\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Whats_in_This_Guide\" >What&#8217;s in This Guide<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#How_the_After_Repair_Value_Calculator_Works_%E2%80%94_and_Why_ARVs_the_Most_Important_Number_in_a_Flip\" >How the After Repair Value Calculator Works \u2014 and Why ARV&#8217;s the Most Important Number in a Flip<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Method_1_Comparable_Sales_CMA_%E2%80%94_The_Gold_Standard\" >Method 1: Comparable Sales (CMA) \u2014 The Gold Standard<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Step_1_%E2%80%94_Select_Comparable_Properties\" >Step 1 \u2014 Select Comparable Properties<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Step_2_%E2%80%94_Make_Dollar_Adjustments\" >Step 2 \u2014 Make Dollar Adjustments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Step_3_%E2%80%94_Reconcile_to_a_Single_ARV\" >Step 3 \u2014 Reconcile to a Single ARV<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Method_2_Price_Per_Square_Foot_%E2%80%94_Fast_Cross-Check\" >Method 2: Price Per Square Foot \u2014 Fast Cross-Check<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#How_to_Calculate\" >How to Calculate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Example\" >Example<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Method_3_Cost_Approach_%E2%80%94_For_Unique_Properties\" >Method 3: Cost Approach \u2014 For Unique Properties<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Three_Components\" >Three Components<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#How_to_Find_Comps_5_Sources_Ranked_by_Reliability\" >How to Find Comps: 5 Sources Ranked by Reliability<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#1_MLS_Multiple_Listing_Service\" >1. MLS (Multiple Listing Service)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#2_Redfin\" >2. Redfin<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#3_Zillow\" >3. Zillow<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#4_County_Assessor_Public_Records\" >4. County Assessor \/ Public Records<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#5_PropStream_BatchData_and_Similar_Platforms\" >5. PropStream, BatchData, and Similar Platforms<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Worked_Example_1_Houston_SFR_%E2%80%94_ARV_285000\" >Worked Example 1: Houston SFR \u2014 ARV = $285,000<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Step_1_%E2%80%94_Identify_Comps\" >Step 1 \u2014 Identify Comps<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Step_2_%E2%80%94_Adjustments\" >Step 2 \u2014 Adjustments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Step_3_%E2%80%94_Reconcile\" >Step 3 \u2014 Reconcile<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Worked_Example_2_Tampa_Duplex_%E2%80%94_ARV_380000\" >Worked Example 2: Tampa Duplex \u2014 ARV = $380,000<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Comp_Selection\" >Comp Selection<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Adjustments\" >Adjustments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Reconciliation\" >Reconciliation<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#MAO_Calculation_Turning_ARV_Into_an_Offer_Price\" >MAO Calculation: Turning ARV Into an Offer Price<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Houston_Example_%E2%80%94_MAO_Calculation\" >Houston Example \u2014 MAO Calculation<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#5_ARV_Mistakes_That_Cost_Investors_Real_Money\" >5 ARV Mistakes That Cost Investors Real Money<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Mistake_1_Cherry-Picking_Comps\" >Mistake 1: Cherry-Picking Comps<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Mistake_2_Ignoring_Time_Adjustments\" >Mistake 2: Ignoring Time Adjustments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Mistake_3_Using_the_Wrong_Square_Footage\" >Mistake 3: Using the Wrong Square Footage<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Mistake_4_Ignoring_Market_Direction\" >Mistake 4: Ignoring Market Direction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Mistake_5_Over-Improving_for_the_Neighborhood\" >Mistake 5: Over-Improving for the Neighborhood<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#ARV_in_the_BRRRR_Strategy\" >ARV in the BRRRR Strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Using_an_After_Repair_Value_Calculator_What_to_Look_For\" >Using an After Repair Value Calculator: What to Look For<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Related_Calculators_and_Guides\" >Related Calculators and Guides<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-38\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#In-Depth_Guides\" >In-Depth Guides<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-39\" href=\"https:\/\/arvcalc.com\/blog\/after-repair-value-calculator-guide\/#Bottom_Line\" >Bottom Line<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Whats_in_This_Guide\"><\/span>What&#8217;s in This Guide<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li><a href=\"#what-is-arv\">What Is After Repair Value?<\/a><\/li>\n<li><a href=\"#method-1-cma\">Method 1: Comparable Sales (CMA)<\/a><\/li>\n<li><a href=\"#method-2-price-per-sqft\">Method 2: Price Per Square Foot<\/a><\/li>\n<li><a href=\"#method-3-cost-approach\">Method 3: Cost Approach<\/a><\/li>\n<li><a href=\"#how-to-find-comps\">How to Find Comps<\/a><\/li>\n<li><a href=\"#worked-example-1\">Worked Example 1 \u2014 Houston SFR ($285K ARV)<\/a><\/li>\n<li><a href=\"#worked-example-2\">Worked Example 2 \u2014 Tampa Duplex ($380K ARV)<\/a><\/li>\n<li><a href=\"#mao-calculation\">MAO Calculation: The 70% Rule<\/a><\/li>\n<li><a href=\"#common-mistakes\">5 Common ARV Mistakes<\/a><\/li>\n<li><a href=\"#faq\">FAQ<\/a><\/li>\n<li><a href=\"#related-calculators\">Related Calculators<\/a><\/li>\n<\/ol><\/div>\n<p>    <!-- \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 SECTION 1 \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 --><\/p>\n<h2 id=\"what-is-arv\"><span class=\"ez-toc-section\" id=\"How_the_After_Repair_Value_Calculator_Works_%E2%80%94_and_Why_ARVs_the_Most_Important_Number_in_a_Flip\"><\/span>How the After Repair Value Calculator Works \u2014 and Why ARV&#8217;s the Most Important Number in a Flip<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>After repair value (ARV)<\/strong> is the projected market value of a distressed property after planned renovations are complete. It is not the list price, not the as-is value, and not a guess \u2014 it is a data-backed estimate derived from recent comparable sales in the same neighborhood.<\/p>\n<p>ARV drives every other calculation in a fix-and-flip deal:<\/p>\n<ul>\n<li><strong>Maximum allowable offer (MAO)<\/strong> \u2014 how much you can pay for the property<\/li>\n<li><strong>Rehab budget ceiling<\/strong> \u2014 how much renovation is financially justified<\/li>\n<li><strong>Profit projection<\/strong> \u2014 what remains after purchase, holding costs, and closing fees<\/li>\n<li><strong>Lender qualification<\/strong> \u2014 hard money lenders typically advance 65\u201375% of ARV<\/li>\n<\/ul>\n<p>Overstating ARV by even 8\u201310% on a mid-size flip can turn a $40,000 projected profit into a loss. This is why serious investors use a purpose-built <a href=\"\/arv-calculator\">ARV calculator<\/a> rather than a back-of-envelope guess.<\/p>\n<div class=\"callout callout--blue\">\n<div class=\"callout-title\">Quick Definition<\/div>\n<p><strong>ARV = Market value of the subject property after renovations are complete<\/strong>, estimated by analyzing comparable recently sold properties in the same area with similar characteristics.<\/p>\n<\/p><\/div>\n<p>There are three accepted methods for calculating ARV: the comparable sales approach, the price-per-square-foot method, and the cost approach. Professional appraisers overwhelmingly rely on the comparable sales method \u2014 the <a href=\"https:\/\/www.appraisalinstitute.org\/professional-practice\/uspap\/\" rel=\"nofollow noopener\" target=\"_blank\">Uniform Standards of Professional Appraisal Practice (USPAP)<\/a> treats it as the primary method for residential property. The other two serve as cross-checks.<\/p>\n<p>    <!-- \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 SECTION 2 \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 --><\/p>\n<h2 id=\"method-1-cma\"><span class=\"ez-toc-section\" id=\"Method_1_Comparable_Sales_CMA_%E2%80%94_The_Gold_Standard\"><\/span>Method 1: Comparable Sales (CMA) \u2014 The Gold Standard<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A <strong>comparative market analysis (CMA)<\/strong> finds 3\u20135 properties that have sold recently, are physically similar to your subject property after renovation, and are located in the same micro-market. Each comp&#8217;s sale price is then adjusted upward or downward based on differences from the subject, and the adjusted values are reconciled into a single ARV estimate.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_1_%E2%80%94_Select_Comparable_Properties\"><\/span>Step 1 \u2014 Select Comparable Properties<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The tighter your comp criteria, the more accurate your ARV. Use these filters as a starting point:<\/p>\n<div class=\"table-wrap\">\n<table>\n<thead>\n<tr>\n<th>Criterion<\/th>\n<th>Preferred Range<\/th>\n<th>Acceptable Range<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Sale date<\/td>\n<td>Within 3 months<\/td>\n<td>Within 6 months<\/td>\n<\/tr>\n<tr>\n<td>Distance from subject<\/td>\n<td>Within 0.5 miles<\/td>\n<td>Within 1 mile (same neighborhood)<\/td>\n<\/tr>\n<tr>\n<td>Gross living area (GLA)<\/td>\n<td>Within \u00b110%<\/td>\n<td>Within \u00b120%<\/td>\n<\/tr>\n<tr>\n<td>Bedrooms<\/td>\n<td>Same count<\/td>\n<td>\u00b11 bedroom<\/td>\n<\/tr>\n<tr>\n<td>Bathrooms<\/td>\n<td>Same count<\/td>\n<td>\u00b10.5 bath<\/td>\n<\/tr>\n<tr>\n<td>Property type<\/td>\n<td>Identical (SFR, duplex, etc.)<\/td>\n<td>Same type required<\/td>\n<\/tr>\n<tr>\n<td>Condition at sale<\/td>\n<td>Renovated \/ move-in ready<\/td>\n<td>Updated within 5 years<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<p>If you can&#8217;t find 3 comps within preferred range, widen the radius before widening the time window \u2014 a recent sale a mile away is usually more accurate than a six-month-old sale across the street in a moving market.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_2_%E2%80%94_Make_Dollar_Adjustments\"><\/span>Step 2 \u2014 Make Dollar Adjustments<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>No two properties are identical. Each material difference between a comp and your subject property requires a dollar adjustment. The direction of the adjustment follows one rule: <em>if the comp is superior to the subject, adjust the comp downward; if the comp is inferior, adjust it upward.<\/em><\/p>\n<p>Common adjustment items and approximate values (these vary by market \u2014 always calibrate against local data):<\/p>\n<div class=\"table-wrap\">\n<table>\n<thead>\n<tr>\n<th>Feature<\/th>\n<th>Typical Adjustment<\/th>\n<th>Notes<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Gross living area<\/td>\n<td>$40\u2013$120\/sqft<\/td>\n<td>Use local $\/sqft from paired sales<\/td>\n<\/tr>\n<tr>\n<td>Bedroom (\u00b11)<\/td>\n<td>$5,000\u2013$15,000<\/td>\n<td>Less impactful if sqft already adjusted<\/td>\n<\/tr>\n<tr>\n<td>Full bathroom (\u00b11)<\/td>\n<td>$8,000\u2013$20,000<\/td>\n<td>Higher in larger markets<\/td>\n<\/tr>\n<tr>\n<td>Garage (\u00b11 car)<\/td>\n<td>$8,000\u2013$20,000<\/td>\n<td>Varies by climate\/market<\/td>\n<\/tr>\n<tr>\n<td>Pool<\/td>\n<td>$10,000\u2013$40,000<\/td>\n<td>Lower ROI in colder climates<\/td>\n<\/tr>\n<tr>\n<td>Lot size (per 1,000 sqft)<\/td>\n<td>$2,000\u2013$10,000<\/td>\n<td>Minimal in dense urban areas<\/td>\n<\/tr>\n<tr>\n<td>Condition (updated vs. dated)<\/td>\n<td>$10,000\u2013$30,000+<\/td>\n<td>Critical for flip comps<\/td>\n<\/tr>\n<tr>\n<td>Time adjustment (per month)<\/td>\n<td>0\u20131.5% of sale price<\/td>\n<td>Apply if market has moved<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Step_3_%E2%80%94_Reconcile_to_a_Single_ARV\"><\/span>Step 3 \u2014 Reconcile to a Single ARV<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Once you have adjusted values for 3\u20135 comps, do not simply average them. Give more weight to comps that required fewer adjustments and are most similar to your subject. A common reconciliation approach:<\/p>\n<div class=\"formula\">ARV \u2248 weighted average of adjusted comp values<br \/>\n(comps needing fewest adjustments = highest weight)<\/div>\n<p>This method is used by licensed appraisers, lenders, and experienced flippers. For step-by-step guidance, see our full <a href=\"\/blog\/after-repair-value-guide\/\">after repair value guide<\/a>.<\/p>\n<p>    <!-- \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 SECTION 3 \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 --><\/p>\n<h2 id=\"method-2-price-per-sqft\"><span class=\"ez-toc-section\" id=\"Method_2_Price_Per_Square_Foot_%E2%80%94_Fast_Cross-Check\"><\/span>Method 2: Price Per Square Foot \u2014 Fast Cross-Check<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The price-per-square-foot (PPSF) method is faster than a full CMA but less precise. It works best as a sanity check against your comp-adjusted ARV rather than as a primary method.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_to_Calculate\"><\/span>How to Calculate<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol class=\"step-list\">\n<li>Collect 5\u201310 recent comparable sales in the neighborhood.<\/li>\n<li>Divide each sale price by the gross living area to get $\/sqft for each comp.<\/li>\n<li>Discard outliers (highest and lowest), then average the remaining values.<\/li>\n<li>Multiply the average $\/sqft by your subject property&#8217;s post-renovation GLA.<\/li>\n<\/ol>\n<div class=\"formula\">ARV = Average Comp $\/sqft  \u00d7  Subject GLA (sqft)<\/div>\n<h3><span class=\"ez-toc-section\" id=\"Example\"><\/span>Example<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"table-wrap\">\n<table>\n<thead>\n<tr>\n<th>Comp<\/th>\n<th>Sale Price<\/th>\n<th>GLA (sqft)<\/th>\n<th>$\/sqft<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>A<\/td>\n<td>$272,000<\/td>\n<td>1,350<\/td>\n<td>$201.48<\/td>\n<\/tr>\n<tr>\n<td>B<\/td>\n<td>$289,000<\/td>\n<td>1,420<\/td>\n<td>$203.52<\/td>\n<\/tr>\n<tr>\n<td>C<\/td>\n<td>$261,000<\/td>\n<td>1,300<\/td>\n<td>$200.77<\/td>\n<\/tr>\n<tr>\n<td>D<\/td>\n<td>$295,000<\/td>\n<td>1,480<\/td>\n<td>$199.32<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<p>Average $\/sqft = $201.27. Subject GLA after renovation = 1,400 sqft.<\/p>\n<div class=\"formula\">ARV = $201.27 \u00d7 1,400 = $281,778  \u2248  $282,000<\/div>\n<p>This gives a quick range to compare against the CMA result. If the two methods diverge by more than 5\u20137%, dig deeper before trusting either number. The PPSF method struggles when properties in a neighborhood vary widely in age, lot size, or finish level.<\/p>\n<div class=\"callout callout--yellow\">\n<div class=\"callout-title\">When PPSF Misleads You<\/div>\n<p>A neighborhood with a mix of 1960s ranches and 2010s two-story builds will show a wide $\/sqft range. Using the average without segmenting by decade of construction can produce an ARV that is $30,000\u2013$50,000 off. Always segment your comp pool before averaging.<\/p>\n<\/p><\/div>\n<p>    <!-- \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 SECTION 4 \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 --><\/p>\n<h2 id=\"method-3-cost-approach\"><span class=\"ez-toc-section\" id=\"Method_3_Cost_Approach_%E2%80%94_For_Unique_Properties\"><\/span>Method 3: Cost Approach \u2014 For Unique Properties<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The cost approach estimates value by calculating what it would cost to build an equivalent property from scratch, then subtracting depreciation. It is most relevant for unusual properties with few comps \u2014 a custom home on an oversized lot, a historic conversion, or a property in a rural area with sparse sales data.<\/p>\n<div class=\"formula\">ARV = Land Value + (Replacement Cost of Improvements \u2013 Depreciation)<\/div>\n<h3><span class=\"ez-toc-section\" id=\"Three_Components\"><\/span>Three Components<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>1. Land Value<\/strong> \u2014 Estimate using recent vacant lot sales in the same area, or by extracting land value from comparable improved sales (land residual technique).<\/p>\n<p><strong>2. Replacement Cost<\/strong> \u2014 The cost to construct an equivalent structure at today&#8217;s prices. Per the <a href=\"https:\/\/www.appraisalinstitute.org\" rel=\"nofollow noopener\" target=\"_blank\">Appraisal Institute<\/a>, residential replacement cost in U.S. markets in 2025\u20132026 ranges from $120\/sqft (basic construction) to $280+\/sqft (high-end finishes, major metros). Use a cost data service or a contractor estimate rather than national averages.<\/p>\n<p><strong>3. Depreciation<\/strong> \u2014 Includes physical deterioration (wear and tear), functional obsolescence (outdated layout, low ceilings), and external obsolescence (proximity to a noisy highway). For a fully renovated flip, physical depreciation is minimal, but functional and external factors may still apply.<\/p>\n<div class=\"callout callout--blue\">\n<div class=\"callout-title\">When Flippers Use the Cost Approach<\/div>\n<p>Most residential flippers use it only as a tie-breaker when comps are scarce. If you&#8217;re flipping a property in a dense urban neighborhood with 20+ comparable sales in the past six months, skip the cost approach and focus on the CMA.<\/p>\n<\/p><\/div>\n<p>    <!-- \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 SECTION 5 \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 --><\/p>\n<h2 id=\"how-to-find-comps\"><span class=\"ez-toc-section\" id=\"How_to_Find_Comps_5_Sources_Ranked_by_Reliability\"><\/span>How to Find Comps: 5 Sources Ranked by Reliability<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Your ARV is only as good as the comps behind it. Here are the five primary data sources, ranked from most to least reliable for residential fix-and-flip analysis.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_MLS_Multiple_Listing_Service\"><\/span>1. MLS (Multiple Listing Service)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The MLS is the gold standard. It contains actual recorded sale prices, accurate square footage from listing agents, and detailed feature data. Access requires a real estate agent&#8217;s license or a subscription through a broker. If you&#8217;re doing more than one or two deals per year, having MLS access \u2014 directly or through a buyer&#8217;s agent relationship \u2014 is non-negotiable.<\/p>\n<p><a href=\"https:\/\/www.nar.realtor\/research-and-statistics\" rel=\"nofollow noopener\" target=\"_blank\">NAR research<\/a> consistently shows that MLS-sourced data has a higher degree of accuracy than aggregator platforms because listing agents are incentivized to enter correct data for appraisal purposes.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Redfin\"><\/span>2. Redfin<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/www.redfin.com\/news\/data-center\/\" rel=\"nofollow noopener\" target=\"_blank\">Redfin&#8217;s public data center<\/a> pulls directly from MLS feeds in most markets, making it one of the most accurate free alternatives. Its &#8220;Recently Sold&#8221; filter lets you narrow by bedrooms, bathrooms, square footage, and sale date. Redfin also shows days on market and price drops, which help you identify whether a comp sold at ask or took a concession.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Zillow\"><\/span>3. Zillow<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/www.zillow.com\/research\/\" rel=\"nofollow noopener\" target=\"_blank\">Zillow Research<\/a> is widely accessible and useful for getting a quick picture, but it lags MLS data by a few days to weeks and occasionally shows public record price rather than net sale price. Use it to identify candidates, then verify with MLS or Redfin.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_County_Assessor_Public_Records\"><\/span>4. County Assessor \/ Public Records<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Every recorded sale in the United States becomes a public record filed with the county assessor or recorder. These records are free and unfiltered \u2014 including sales that never hit the MLS (estate sales, off-market transfers). The downside: details like square footage and condition may be outdated or missing. Pair public records with photo verification on Google Street View or a drive-by inspection.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_PropStream_BatchData_and_Similar_Platforms\"><\/span>5. PropStream, BatchData, and Similar Platforms<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Paid data platforms aggregate MLS, public records, and assessor data in one place. They&#8217;re useful for investors who pull comp data frequently and want filtering, export, and skip-tracing in the same tool. Monthly costs run $100\u2013$300 depending on access level.<\/p>\n<div class=\"cta-block\">\n      <a href=\"\/arv-calculator\" class=\"cta-btn\">Run Your ARV Calculation Now<\/a><\/p>\n<p class=\"cta-sub\">Free. No signup required. Results in under 60 seconds.<\/p>\n<\/p><\/div>\n<p>    <!-- \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 WORKED EXAMPLE 1 \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 --><\/p>\n<h2 id=\"worked-example-1\"><span class=\"ez-toc-section\" id=\"Worked_Example_1_Houston_SFR_%E2%80%94_ARV_285000\"><\/span>Worked Example 1: Houston SFR \u2014 ARV = $285,000<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"example\">\n<div class=\"example-title\">Scenario: 3BR \/ 2BA Ranch, Houston (Harris County), TX<\/div>\n<p><strong>Subject property:<\/strong> 1,400 sqft single-family ranch, built 1987. Planned renovation: full kitchen remodel, two bathroom updates, LVP flooring throughout, exterior paint, HVAC replacement. Post-renovation condition: fully updated, move-in ready.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_1_%E2%80%94_Identify_Comps\"><\/span>Step 1 \u2014 Identify Comps<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Three recently sold properties in the same zip code, all within 0.6 miles, all sold within 90 days in updated condition:<\/p>\n<div class=\"table-wrap\">\n<table>\n<thead>\n<tr>\n<th>Comp<\/th>\n<th>Sale Price<\/th>\n<th>GLA<\/th>\n<th>Beds\/Baths<\/th>\n<th>Garage<\/th>\n<th>Pool<\/th>\n<th>Sold<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Comp 1<\/td>\n<td>$278,000<\/td>\n<td>1,380 sqft<\/td>\n<td>3 \/ 2<\/td>\n<td>2-car<\/td>\n<td>No<\/td>\n<td>62 days ago<\/td>\n<\/tr>\n<tr>\n<td>Comp 2<\/td>\n<td>$295,000<\/td>\n<td>1,460 sqft<\/td>\n<td>3 \/ 2<\/td>\n<td>2-car<\/td>\n<td>Yes<\/td>\n<td>41 days ago<\/td>\n<\/tr>\n<tr>\n<td>Comp 3<\/td>\n<td>$271,500<\/td>\n<td>1,350 sqft<\/td>\n<td>3 \/ 2<\/td>\n<td>1-car<\/td>\n<td>No<\/td>\n<td>28 days ago<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<p>Subject property: 1,400 sqft, 3BR\/2BA, 2-car garage, no pool.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_2_%E2%80%94_Adjustments\"><\/span>Step 2 \u2014 Adjustments<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Local $\/sqft derived from paired sales: <strong>$85\/sqft for GLA differences<\/strong>. Garage adjustment: $12,000 per car space. Pool: $18,000.<\/p>\n<div class=\"table-wrap\">\n<table>\n<thead>\n<tr>\n<th>Item<\/th>\n<th>Comp 1 Adj.<\/th>\n<th>Comp 2 Adj.<\/th>\n<th>Comp 3 Adj.<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Sale price<\/td>\n<td>$278,000<\/td>\n<td>$295,000<\/td>\n<td>$271,500<\/td>\n<\/tr>\n<tr>\n<td>GLA vs. 1,400 sqft<\/td>\n<td>+$1,700<br \/><em>(1,380\u21921,400: +20 sqft \u00d7 $85)<\/em><\/td>\n<td>\u2212$5,100<br \/><em>(1,460\u21921,400: \u221260 sqft \u00d7 $85)<\/em><\/td>\n<td>+$4,250<br \/><em>(1,350\u21921,400: +50 sqft \u00d7 $85)<\/em><\/td>\n<\/tr>\n<tr>\n<td>Garage (subject = 2-car)<\/td>\n<td>$0<\/td>\n<td>$0<\/td>\n<td>+$12,000<br \/><em>(comp has 1-car)<\/em><\/td>\n<\/tr>\n<tr>\n<td>Pool (subject = no pool)<\/td>\n<td>$0<\/td>\n<td>\u2212$18,000<br \/><em>(comp has pool)<\/em><\/td>\n<td>$0<\/td>\n<\/tr>\n<tr>\n<td><strong>Adjusted Value<\/strong><\/td>\n<td><strong>$279,700<\/strong><\/td>\n<td><strong>$271,900<\/strong><\/td>\n<td><strong>$287,750<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Step_3_%E2%80%94_Reconcile\"><\/span>Step 3 \u2014 Reconcile<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Comp 1 required only one small adjustment \u2014 it&#8217;s the closest match and gets the highest weight (40%). Comp 3 also closely matches but needed a larger GLA and garage adjustment (35%). Comp 2 required two significant adjustments and gets the lowest weight (25%).<\/p>\n<div class=\"formula\">ARV = ($279,700 \u00d7 0.40) + ($287,750 \u00d7 0.35) + ($271,900 \u00d7 0.25)<br \/>\n    = $111,880 + $100,713 + $67,975<br \/>\n    = $280,568  \u2192  rounded to $281,000<\/div>\n<p>Cross-check with PPSF: Average $\/sqft from three comps = $201.29. \u00d7 1,400 sqft = $281,800. Both methods converge near $281,000\u2013$282,000.<\/p>\n<p>A professional would round conservatively to reflect market uncertainty:<\/p>\n<div class=\"result-box\">\n<div class=\"result-label\">Estimated ARV<\/div>\n<div class=\"result-value\">$285,000<\/div>\n<p style=\"font-size:0.85rem; margin-top:4px; color:#555;\">Conservative rounding applied; actual offers should use $280K for MAO calculation.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<p>    <!-- \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 WORKED EXAMPLE 2 \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 --><\/p>\n<h2 id=\"worked-example-2\"><span class=\"ez-toc-section\" id=\"Worked_Example_2_Tampa_Duplex_%E2%80%94_ARV_380000\"><\/span>Worked Example 2: Tampa Duplex \u2014 ARV = $380,000<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"example\">\n<div class=\"example-title\">Scenario: 2-Unit Duplex, Tampa (Hillsborough County), FL<\/div>\n<p><strong>Subject property:<\/strong> Duplex, each unit 2BR\/1BA, total 1,900 sqft GLA (950 sqft per unit). Built 1978. Planned renovation: new electrical panel, updated kitchens in both units, bathroom updates, new roof, exterior paint. Post-renovation: fully updated duplex, both units vacant at sale.<\/p>\n<div class=\"callout callout--yellow\">\n<div class=\"callout-title\">Duplex ARV Note<\/div>\n<p>For income-producing properties, appraisers cross-check the sales comparison approach against the income approach (cap rate analysis). For a small duplex in an owner-occupant market, the sales comparison approach typically drives value. For larger multi-family, income approach dominates. See our <a href=\"\/fix-and-flip-calculator\">fix-and-flip calculator<\/a> for income-property deal analysis.<\/p>\n<\/p><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Comp_Selection\"><\/span>Comp Selection<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Finding duplex comps is harder than SFR comps \u2014 there are simply fewer sales. The search radius was widened to 1.2 miles and the time window extended to 5 months to find three suitable comps.<\/p>\n<div class=\"table-wrap\">\n<table>\n<thead>\n<tr>\n<th>Comp<\/th>\n<th>Sale Price<\/th>\n<th>Total GLA<\/th>\n<th>Units<\/th>\n<th>Condition at Sale<\/th>\n<th>Days Ago<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Comp A<\/td>\n<td>$365,000<\/td>\n<td>1,860 sqft<\/td>\n<td>2 \u00d7 2BR\/1BA<\/td>\n<td>Updated<\/td>\n<td>38<\/td>\n<\/tr>\n<tr>\n<td>Comp B<\/td>\n<td>$395,000<\/td>\n<td>2,050 sqft<\/td>\n<td>2 \u00d7 2BR\/1BA<\/td>\n<td>Updated + new roof<\/td>\n<td>91<\/td>\n<\/tr>\n<tr>\n<td>Comp C<\/td>\n<td>$352,000<\/td>\n<td>1,820 sqft<\/td>\n<td>2 \u00d7 2BR\/1BA<\/td>\n<td>Updated<\/td>\n<td>142<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Adjustments\"><\/span>Adjustments<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Local duplex $\/sqft from paired sales: $95\/sqft. Time adjustment for 142-day-old sale in a market that appreciated approximately 0.5%\/month: +$5,280 (2.5 months \u00d7 0.5% \u00d7 $352,000 \u00f7 2 = partial adjustment; applied $5,000 for simplicity).<\/p>\n<div class=\"table-wrap\">\n<table>\n<thead>\n<tr>\n<th>Item<\/th>\n<th>Comp A<\/th>\n<th>Comp B<\/th>\n<th>Comp C<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Sale price<\/td>\n<td>$365,000<\/td>\n<td>$395,000<\/td>\n<td>$352,000<\/td>\n<\/tr>\n<tr>\n<td>GLA vs. 1,900 sqft<\/td>\n<td>+$3,800<br \/>(+40 sqft)<\/td>\n<td>\u2212$14,250<br \/>(\u2212150 sqft)<\/td>\n<td>+$7,600<br \/>(+80 sqft)<\/td>\n<\/tr>\n<tr>\n<td>Time adjustment<\/td>\n<td>$0<\/td>\n<td>$0<\/td>\n<td>+$5,000<\/td>\n<\/tr>\n<tr>\n<td><strong>Adjusted Value<\/strong><\/td>\n<td><strong>$368,800<\/strong><\/td>\n<td><strong>$380,750<\/strong><\/td>\n<td><strong>$364,600<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Reconciliation\"><\/span>Reconciliation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"formula\">ARV = ($368,800 \u00d7 0.40) + ($380,750 \u00d7 0.35) + ($364,600 \u00d7 0.25)<br \/>\n    = $147,520 + $133,263 + $91,150<br \/>\n    = $371,933  \u2192  rounded to $372,000<\/div>\n<p>The investor applied a modest upward adjustment because the subject duplex would include a <em>brand-new roof<\/em> \u2014 a feature that Comp B commanded a premium for. After reviewing Comp B&#8217;s DOM and final sale data, an additional $8,000 was added.<\/p>\n<div class=\"result-box\">\n<div class=\"result-label\">Estimated ARV \u2014 Tampa Duplex<\/div>\n<div class=\"result-value\">$380,000<\/div>\n<p style=\"font-size:0.85rem; margin-top:4px; color:#555;\">Use $372,000 for conservative MAO calculation; $380,000 as upside scenario.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<p>    <!-- \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 MAO SECTION \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 --><\/p>\n<h2 id=\"mao-calculation\"><span class=\"ez-toc-section\" id=\"MAO_Calculation_Turning_ARV_Into_an_Offer_Price\"><\/span>MAO Calculation: Turning ARV Into an Offer Price<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Once you have a reliable ARV, the next step is calculating the <strong>maximum allowable offer (MAO)<\/strong> \u2014 the highest price you can pay for the property and still make your target profit. The most widely used formula is the 70% rule.<\/p>\n<div class=\"formula\">MAO = (ARV \u00d7 70%) \u2212 Estimated Rehab Cost<\/div>\n<p>The 70% factor leaves room for:<\/p>\n<ul>\n<li>Profit (typically 10\u201315% of ARV)<\/li>\n<li>Selling costs \u2014 agent commissions (5\u20136%), closing costs (1\u20132%)<\/li>\n<li>Holding costs \u2014 loan interest, taxes, insurance, utilities<\/li>\n<li>Contingency \u2014 unexpected rehab items, cost overruns<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Houston_Example_%E2%80%94_MAO_Calculation\"><\/span>Houston Example \u2014 MAO Calculation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"formula\">ARV = $285,000<br \/>\nRehab = $62,000<\/p>\n<p>MAO = ($285,000 \u00d7 0.70) \u2212 $62,000<br \/>\n    = $199,500 \u2212 $62,000<br \/>\n    = $137,500<\/p><\/div>\n<p>If Maria can acquire the Houston ranch for $137,500 or less, she is within the 70% rule parameters. Above that threshold, the deal becomes marginal \u2014 a rise in rehab costs or a softening of the market could eliminate her profit entirely.<\/p>\n<div class=\"callout callout--green\">\n<div class=\"callout-title\">Adjust the Percentage for Your Market<\/div>\n<p>In highly competitive metro markets (DFW, Tampa, Phoenix), experienced investors sometimes use 75% because competition has compressed margins. In slower or rural markets, 65% is more appropriate. Our <a href=\"\/70-percent-rule-calculator\">70% rule calculator<\/a> lets you test different percentages and scenarios.<\/p>\n<\/p><\/div>\n<p>For a full walk-through of how MAO fits into the overall deal analysis, see our guides on the <a href=\"\/blog\/70-percent-rule-real-estate-flipping-guide\/\">70% rule in real estate flipping<\/a> and the <a href=\"\/blog\/maximum-allowable-offer-calculator\/\">maximum allowable offer calculator<\/a>.<\/p>\n<p>Rehab cost estimation deserves its own analysis \u2014 overestimating kills deals, underestimating kills profits. Our <a href=\"\/blog\/cost-to-rehab-a-house\/\">cost to rehab a house guide<\/a> and <a href=\"\/blog\/rehab-cost-estimator-guide\/\">rehab cost estimator guide<\/a> both cover line-item budgeting in depth.<\/p>\n<hr \/>\n<p>    <!-- \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 MISTAKES SECTION \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 --><\/p>\n<h2 id=\"common-mistakes\"><span class=\"ez-toc-section\" id=\"5_ARV_Mistakes_That_Cost_Investors_Real_Money\"><\/span>5 ARV Mistakes That Cost Investors Real Money<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The difference between a profitable flip and a loss is often not the deal itself \u2014 it&#8217;s the ARV estimate. Here are the five most costly mistakes, in order of how frequently they occur.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mistake_1_Cherry-Picking_Comps\"><\/span>Mistake 1: Cherry-Picking Comps<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Selecting only the highest-priced recent sales to justify a predetermined ARV is the most common and most dangerous mistake. It usually happens when an investor has already fallen in love with a property and is reverse-engineering the numbers to make the deal work.<\/p>\n<p>The fix: gather all comparable sales in your criteria window, eliminate outliers based on objective criteria (distressed sales, estate sales at below-market prices, non-arm&#8217;s-length transactions), and work with what&#8217;s left \u2014 even if the resulting ARV is lower than you hoped.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mistake_2_Ignoring_Time_Adjustments\"><\/span>Mistake 2: Ignoring Time Adjustments<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A sale from six months ago in a market that has moved 5% since then is not a valid comp without adjustment. In a rising market, failing to apply a time adjustment understates your ARV. In a declining market \u2014 arguably the more dangerous scenario \u2014 it overstates it.<\/p>\n<p>According to <a href=\"https:\/\/www.zillow.com\/research\/home-value-index-methodology-8595\/\" rel=\"nofollow noopener\" target=\"_blank\">Zillow&#8217;s Home Value Index methodology<\/a>, metro-level home value changes can accelerate or reverse within a single quarter. Always check whether the market has moved since your oldest comp sold.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mistake_3_Using_the_Wrong_Square_Footage\"><\/span>Mistake 3: Using the Wrong Square Footage<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Gross living area (GLA) in an appraisal includes only <em>above-grade finished space<\/em>. A finished basement does not count as GLA under USPAP guidelines, even if it has bedrooms and full bathrooms. Using total square footage (including basement) instead of above-grade GLA inflates your ARV by the basement $\/sqft \u2014 often $30,000\u2013$60,000 on a mid-size home.<\/p>\n<p>Always confirm whether your comps&#8217; square footage figures are above-grade GLA or total finished area before running calculations.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mistake_4_Ignoring_Market_Direction\"><\/span>Mistake 4: Ignoring Market Direction<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>An ARV estimate is not a static number \u2014 it reflects conditions at a specific point in time. If you&#8217;re projecting a 4-month rehab timeline and the market is softening, your actual selling price may be 3\u20135% below your ARV estimate. Build this into your underwriting by using a slightly lower ARV (95% of estimate) or by shortening the projected hold period.<\/p>\n<p>Redfin&#8217;s <a href=\"https:\/\/www.redfin.com\/news\/data-center\/\" rel=\"nofollow noopener\" target=\"_blank\">market data center<\/a> publishes weekly median sale price, days on market, and sale-to-list ratio data by metro \u2014 all useful leading indicators of market direction.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mistake_5_Over-Improving_for_the_Neighborhood\"><\/span>Mistake 5: Over-Improving for the Neighborhood<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Installing a $25,000 kitchen in a neighborhood where fully renovated homes sell for $180,000 will not produce a $205,000 sale price. The market caps the value regardless of what you spend. This is the principle of <em>contribution<\/em> in appraisal \u2014 an improvement adds value only to the extent the market recognizes it.<\/p>\n<p>Before finalizing your renovation scope, confirm that the planned finish level matches what buyers in that price range expect. A full guide to scoping renovations for maximum ROI is in our <a href=\"\/blog\/fix-and-flip-guide\/\">fix-and-flip guide<\/a> and our <a href=\"\/blog\/house-flipping-profit-calculator-guide\/\">house flipping profit calculator guide<\/a>.<\/p>\n<div class=\"callout callout--red\">\n<div class=\"callout-title\">Red Flag in Your Own Underwriting<\/div>\n<p>If your ARV estimate is significantly higher than all three of your comps \u2014 even before adjustments \u2014 stop. You are likely in mistake territory. A valid ARV should fall within the range established by your adjusted comps, not above the top of that range.<\/p>\n<\/p><\/div>\n<hr \/>\n<p>    <!-- \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 BRRRR NOTE \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 --><\/p>\n<h2><span class=\"ez-toc-section\" id=\"ARV_in_the_BRRRR_Strategy\"><\/span>ARV in the BRRRR Strategy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) relies on ARV just as heavily as a standard flip \u2014 arguably more so, because the refinance amount is directly tied to the appraised after-repair value. If a lender will refinance at 75% LTV and your ARV is $285,000, you can pull out $213,750 in the refi. If the actual appraised value comes in at $260,000, you pull out $195,000 \u2014 a $18,750 gap that could prevent you from recycling capital into the next deal.<\/p>\n<p>Our <a href=\"\/brrrr-calculator\">BRRRR calculator<\/a> models the full cycle including the refinance step, so you can see exactly how ARV sensitivity affects your cash-out and overall return.<\/p>\n<p>    <!-- \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 TOOLS SECTION \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 --><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Using_an_After_Repair_Value_Calculator_What_to_Look_For\"><\/span>Using an After Repair Value Calculator: What to Look For<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A quality <strong>after repair value calculator<\/strong> should do more than multiply comps by square footage. The most useful tools:<\/p>\n<ul>\n<li>Accept multiple comps with individual adjustments (not just averages)<\/li>\n<li>Calculate weighted reconciled ARV automatically<\/li>\n<li>Link ARV directly to MAO and profit calculation<\/li>\n<li>Allow scenario testing (low\/base\/high ARV) to stress-test the deal<\/li>\n<li>Export or save results for lender presentations<\/li>\n<\/ul>\n<p>Our free <a href=\"\/arv-calculator\">ARV calculator<\/a> handles all of the above. It also connects to the <a href=\"\/fix-and-flip-calculator\">fix-and-flip calculator<\/a> so you can run the full deal analysis \u2014 acquisition, rehab, holding costs, selling costs, and projected profit \u2014 in one flow.<\/p>\n<p>For investors working on BRRRR or rental conversions, the same ARV estimate feeds into our <a href=\"\/brrrr-calculator\">BRRRR calculator<\/a>, which models refinance proceeds and long-term cash flow simultaneously.<\/p>\n<div class=\"cta-block\">\n      <a href=\"\/arv-calculator\" class=\"cta-btn\">Open the Free ARV Calculator<\/a><\/p>\n<p class=\"cta-sub\">Enter your comps and get a reconciled ARV in under 2 minutes.<\/p>\n<\/p><\/div>\n<hr \/>\n<p>    <!-- \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 FAQ \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 --><\/p>\n<h2 id=\"faq\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"faq-section\" id=\"faq-list\">\n<div class=\"faq-item open\">\n        <button class=\"faq-question\" aria-expanded=\"true\"><br \/>\n          What is a good ARV for a fix-and-flip deal?<br \/>\n          <span class=\"faq-icon\">+<\/span><br \/>\n        <\/button><\/p>\n<div class=\"faq-answer\">\n<p>There&#8217;s no universal &#8220;good&#8221; ARV \u2014 what matters is the relationship between ARV, purchase price, and rehab cost. Under the 70% rule, your total investment (purchase + rehab) should not exceed 70% of ARV. A deal where you pay $130,000, spend $55,000 on rehab, and sell for $280,000 ARV is solid \u2014 your $185,000 total investment is 66% of ARV, leaving room for selling costs and a healthy profit. An ARV of $1M is irrelevant if the all-in cost is $980,000.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"faq-item\">\n        <button class=\"faq-question\" aria-expanded=\"false\"><br \/>\n          How accurate is an ARV estimate?<br \/>\n          <span class=\"faq-icon\">+<\/span><br \/>\n        <\/button><\/p>\n<div class=\"faq-answer\">\n<p>A well-researched ARV using 3\u20135 tight comps is typically accurate within \u00b15\u20137%. The actual appraised value (which determines lender financing) may differ from your estimate depending on which comps the appraiser selects and how they weight adjustments. To manage this risk, conservative investors underwrite at 95% of their estimated ARV. In fast-moving markets, the actual sale price often exceeds the ARV estimate if you price correctly and market conditions improve during the hold period.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"faq-item\">\n        <button class=\"faq-question\" aria-expanded=\"false\"><br \/>\n          How many comps do I need to calculate ARV?<br \/>\n          <span class=\"faq-icon\">+<\/span><br \/>\n        <\/button><\/p>\n<div class=\"faq-answer\">\n<p>The minimum for a defensible ARV estimate is three comps. USPAP-compliant appraisals typically use three to five. More comps reduce reliance on any single data point and give you a clearer picture of the market range. If you can only find two comps within acceptable criteria, widen the radius incrementally (0.25 miles at a time) before widening the time window. Fewer than three comps means your ARV carries significantly more uncertainty \u2014 build in a larger contingency accordingly.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"faq-item\">\n        <button class=\"faq-question\" aria-expanded=\"false\"><br \/>\n          Can I use Zillow&#8217;s Zestimate as my ARV?<br \/>\n          <span class=\"faq-icon\">+<\/span><br \/>\n        <\/button><\/p>\n<div class=\"faq-answer\">\n<p>No \u2014 not reliably. The Zestimate is an automated valuation model (AVM) based on publicly available data. It does not account for the specific renovation scope planned, it often lags real market conditions by weeks, and its median error rate nationally is around 2\u20134% (higher in thin markets). For a property that&#8217;s currently distressed, the Zestimate reflects the as-is condition, not the post-renovation value. Use Zillow to identify comp candidates, then build your ARV manually using adjusted comparable sales.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"faq-item\">\n        <button class=\"faq-question\" aria-expanded=\"false\"><br \/>\n          Does ARV include the cost of renovations?<br \/>\n          <span class=\"faq-icon\">+<\/span><br \/>\n        <\/button><\/p>\n<div class=\"faq-answer\">\n<p>No. ARV is the projected market value of the property after renovations are complete \u2014 it does not include rehab costs as a line item. Renovation costs are a separate variable in the deal analysis. The formula is: Profit = ARV \u2212 Purchase Price \u2212 Rehab Costs \u2212 Holding Costs \u2212 Selling Costs. ARV is the ceiling; everything below it is a cost subtracted on the way to profit.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"faq-item\">\n        <button class=\"faq-question\" aria-expanded=\"false\"><br \/>\n          What&#8217;s the difference between ARV and appraised value?<br \/>\n          <span class=\"faq-icon\">+<\/span><br \/>\n        <\/button><\/p>\n<div class=\"faq-answer\">\n<p>ARV is your estimate of what the property will be worth after renovation \u2014 calculated before the work is done. Appraised value is a licensed appraiser&#8217;s official opinion of market value, typically conducted after renovation for a refinance or at sale for a lender. A well-researched ARV estimate should be close to the eventual appraised value, but differences occur because appraisers may select different comps or weigh adjustments differently. Hard money lenders often conduct their own ARV appraisal (called an &#8220;as-completed&#8221; appraisal) before funding a renovation loan.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"faq-item\">\n        <button class=\"faq-question\" aria-expanded=\"false\"><br \/>\n          How does ARV apply to the BRRRR strategy?<br \/>\n          <span class=\"faq-icon\">+<\/span><br \/>\n        <\/button><\/p>\n<div class=\"faq-answer\">\n<p>In BRRRR (Buy, Rehab, Rent, Refinance, Repeat), ARV determines your cash-out refinance amount. If your lender refinances at 75% LTV and your ARV is $300,000, you can pull out up to $225,000. If your total investment was $200,000 (purchase + rehab), you&#8217;ve recycled all your capital and still own the property. ARV accuracy is critical here \u2014 an overestimate means the appraiser comes in lower at refi, leaving you short on capital to fund the next deal. Use our <a href=\"\/brrrr-calculator\">BRRRR calculator<\/a> to model this scenario.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p><!-- end faq-list --><\/p>\n<hr \/>\n<p>    <!-- \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 RELATED CALCULATORS \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 --><\/p>\n<h2 id=\"related-calculators\"><span class=\"ez-toc-section\" id=\"Related_Calculators_and_Guides\"><\/span>Related Calculators and Guides<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>ARV is one input in a larger deal analysis. These tools handle the rest of the calculation stack:<\/p>\n<div class=\"related-grid\">\n      <a href=\"\/arv-calculator\" class=\"related-card\"><\/p>\n<div class=\"related-card-title\">ARV Calculator<\/div>\n<div class=\"related-card-desc\">Enter comps and get a reconciled after repair value estimate instantly.<\/div>\n<p>      <\/a><br \/>\n      <a href=\"\/fix-and-flip-calculator\" class=\"related-card\"><\/p>\n<div class=\"related-card-title\">Fix &amp; Flip Calculator<\/div>\n<div class=\"related-card-desc\">Full deal analyzer: purchase, rehab, hold, sell \u2014 profit in one view.<\/div>\n<p>      <\/a><br \/>\n      <a href=\"\/70-percent-rule-calculator\" class=\"related-card\"><\/p>\n<div class=\"related-card-title\">70% Rule Calculator<\/div>\n<div class=\"related-card-desc\">Calculate MAO automatically from ARV and estimated rehab cost.<\/div>\n<p>      <\/a><br \/>\n      <a href=\"\/brrrr-calculator\" class=\"related-card\"><\/p>\n<div class=\"related-card-title\">BRRRR Calculator<\/div>\n<div class=\"related-card-desc\">Model the buy-rehab-rent-refinance-repeat cycle including cash-out refi.<\/div>\n<p>      <\/a>\n    <\/div>\n<h3><span class=\"ez-toc-section\" id=\"In-Depth_Guides\"><\/span>In-Depth Guides<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><a href=\"\/blog\/after-repair-value-guide\/\">The Complete After Repair Value Guide<\/a> \u2014 deeper dive into comp selection and appraisal methodology<\/li>\n<li><a href=\"\/blog\/fix-and-flip-guide\/\">Fix and Flip Guide for Beginners and Experienced Investors<\/a> \u2014 end-to-end flipping strategy<\/li>\n<li><a href=\"\/blog\/70-percent-rule-real-estate-flipping-guide\/\">The 70% Rule in Real Estate Flipping<\/a> \u2014 when to use it, when to adjust it<\/li>\n<li><a href=\"\/blog\/cost-to-rehab-a-house\/\">How Much Does It Cost to Rehab a House?<\/a> \u2014 line-item rehab budgeting by trade<\/li>\n<li><a href=\"\/blog\/house-flipping-profit-calculator-guide\/\">House Flipping Profit Calculator Guide<\/a> \u2014 understanding your true net return<\/li>\n<li><a href=\"\/blog\/rehab-cost-estimator-guide\/\">Rehab Cost Estimator Guide<\/a> \u2014 scope of work templates and cost benchmarks<\/li>\n<li><a href=\"\/blog\/maximum-allowable-offer-calculator\/\">Maximum Allowable Offer Calculator Guide<\/a> \u2014 MAO methodology explained<\/li>\n<\/ul>\n<hr \/>\n<p>    <!-- \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 CLOSING \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 --><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bottom_Line\"><\/span>Bottom Line<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>An accurate <strong>after repair value calculator<\/strong> is the foundation of every profitable fix-and-flip. Without it, every other number in your deal analysis \u2014 your offer price, your rehab budget ceiling, your projected profit \u2014 is built on unstable ground.<\/p>\n<p>The process is straightforward when you follow the steps: find 3\u20135 comparable sales of renovated properties in the same micro-market, adjust each comp for meaningful differences, reconcile the adjusted values with appropriate weighting, and cross-check with the price-per-square-foot method. When both methods point to the same range, you have a defensible ARV.<\/p>\n<p>From there, the 70% rule converts your ARV into a maximum allowable offer \u2014 giving you a hard number to anchor your negotiation and protect your margin even when costs run over or the market softens.<\/p>\n<p>Use the free tools here to run the numbers on your next deal before you make an offer.<\/p>\n<div class=\"cta-block\">\n      <a href=\"\/arv-calculator\" class=\"cta-btn\">Calculate ARV for Your Next Deal<\/a><\/p>\n<p class=\"cta-sub\">Free \u00b7 No account needed \u00b7 Results in under 2 minutes<\/p>\n<\/p><\/div>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What is a good ARV for a fix-and-flip deal?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"There's no universal \\\"good\\\" ARV \\u2014 what matters is the relationship between ARV, purchase price, and rehab cost. Under the 70% rule, your total investment (purchase + rehab) should not exceed 70% of ARV. A deal where you pay $130,000, spend $55,000 on rehab, and sell for $280,000 ARV is solid \\u2014 your $185,000 total investment is 66% of ARV, leaving room for selling costs and a healthy profit. An ARV of $1M is irrelevant if the all-in cost is $980,000.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How accurate is an ARV estimate?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"A well-researched ARV using 3\\u20135 tight comps is typically accurate within \\u00b15\\u20137%. The actual appraised value (which determines lender financing) may differ from your estimate depending on which comps the appraiser selects and how they weight adjustments. To manage this risk, conservative investors underwrite at 95% of their estimated ARV. In fast-moving markets, the actual sale price often exceeds the ARV estimate if you price correctly and market conditions improve during the hold period.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How many comps do I need to calculate ARV?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"The minimum for a defensible ARV estimate is three comps. USPAP-compliant appraisals typically use three to five. More comps reduce reliance on any single data point and give you a clearer picture of the market range. If you can only find two comps within acceptable criteria, widen the radius incrementally (0.25 miles at a time) before widening the time window. Fewer than three comps means your ARV carries significantly more uncertainty \\u2014 build in a larger contingency accordingly.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Can I use Zillow's Zestimate as my ARV?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"No \\u2014 not reliably. The Zestimate is an automated valuation model (AVM) based on publicly available data. It does not account for the specific renovation scope planned, it often lags real market conditions by weeks, and its median error rate nationally is around 2\\u20134% (higher in thin markets). For a property that's currently distressed, the Zestimate reflects the as-is condition, not the post-renovation value. Use Zillow to identify comp candidates, then build your ARV manually using adjusted comparable sales.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Does ARV include the cost of renovations?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"No. ARV is the projected market value of the property after renovations are complete \\u2014 it does not include rehab costs as a line item. Renovation costs are a separate variable in the deal analysis. The formula is: Profit = ARV \\u2212 Purchase Price \\u2212 Rehab Costs \\u2212 Holding Costs \\u2212 Selling Costs. ARV is the ceiling; everything below it is a cost subtracted on the way to profit.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What's the difference between ARV and appraised value?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"ARV is your estimate of what the property will be worth after renovation \\u2014 calculated before the work is done. Appraised value is a licensed appraiser's official opinion of market value, typically conducted after renovation for a refinance or at sale for a lender. A well-researched ARV estimate should be close to the eventual appraised value, but differences occur because appraisers may select different comps or weigh adjustments differently. Hard money lenders often conduct their own ARV appraisal (called an \\\"as-completed\\\" appraisal) before funding a renovation loan.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How does ARV apply to the BRRRR strategy?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"In BRRRR (Buy, Rehab, Rent, Refinance, Repeat), ARV determines your cash-out refinance amount. If your lender refinances at 75% LTV and your ARV is $300,000, you can pull out up to $225,000. If your total investment was $200,000 (purchase + rehab), you've recycled all your capital and still own the property. ARV accuracy is critical here \\u2014 an overestimate means the appraiser comes in lower at refi, leaving you short on capital to fund the next deal. Use our BRRRR calculator to model this scenario.\"\n      }\n    }\n  ]\n}\n<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Maria spotted a three-bedroom ranch in a Houston suburb listed at $190,000. The roof sagged, the kitchen hadn&#8217;t been touched since 1994, and the carpet was beyond saving. Her contractor&#8230;<\/p>\n","protected":false},"author":0,"featured_media":624,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[],"class_list":["post-622","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-guides"],"_links":{"self":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/622","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/comments?post=622"}],"version-history":[{"count":2,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/622\/revisions"}],"predecessor-version":[{"id":625,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/622\/revisions\/625"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/media\/624"}],"wp:attachment":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/media?parent=622"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/categories?post=622"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/tags?post=622"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}