Glossary

What is ARV (After Repair Value)?

ARV, or After Repair Value, is the estimated market value of a property after it has been fully renovated. It represents what the property would sell for if it were in top condition today, based on recent comparable sales of similar renovated homes in the same area.

ARV Formula

ARV = Median Price Per Square Foot of Renovated Comps × Subject Property Square Footage

In practice, a licensed appraiser uses the sales comparison approach with manual adjustments for each comp. AI tools like Rinsed automate this process using recent MLS data.

Why ARV Matters

ARV is the anchor number for every real estate investment calculation — MAO, deal score, repair ROI, and refinance planning all start here. If your ARV is wrong, every downstream number is wrong.

How to Find Comps for ARV

Use sales within 0.5 miles, similar size (±20% sqft), same bed/bath count, sold within 12 months, and in similar or better condition. Adjust for significant differences in size, age, and features. Take the median adjusted value — not the average.

Frequently Asked Questions

Is ARV the same as appraisal value?
ARV is an estimate of future appraised value after renovation. A licensed appraiser produces the official number. ARV is a planning tool; appraisal is the legal determination.
How accurate is ARV?
ARV accuracy depends on comp quality. In active markets with many similar recent sales, ARV estimates can be very accurate. In thin or unusual markets, expect wider variance.
What's the difference between ARV and as-is value?
As-is value is what the property is worth right now in its current condition. ARV is what it's worth after full renovation. The gap is the renovation upside.
Related Terms
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