Real Estate Term

ARV

After-Repair Value — a property's estimated market value once renovations are complete.

Explanation

Critical for BRRRR investors and flippers. ARV is typically derived from recent sold comparables of similar, fully-renovated properties within ½ mile.

Formula

ARV = Comparable Sale $/Sqft × Subject Property Sqft

Example

Comps sell at $200/sqft. A 1,500 sqft renovated property has an ARV of $300,000.