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How to Calculate ARV in Real Estate

After Repair Value (ARV) is the single most important number in any wholesale deal. Get it wrong and you either overpay or leave money on the table. Here's exactly how to calculate it.

What Is ARV?

ARV stands for After Repair Value — the estimated market value of a property after it has been fully renovated. It's the foundation of every wholesale, fix-and-flip, and BRRRR calculation.

If you're wholesaling, you need ARV to figure out your Maximum Allowable Offer (MAO). If you're flipping, you need it to know what you can sell for after repairs.

The ARV Formula

Or more simply: find 3–5 recently sold, similar homes nearby and average their sale prices. That average is your ARV.

Step-by-Step: How to Pull Comps

1. Set your search radius. Start within 0.5 miles. If you can't find 3+ comps, expand to 1 mile, then 1.5 miles.
2. Filter by sold date. Use comps sold within the last 6–24 months. The more recent, the better. A 6-month window is tighter but more accurate in active markets.
3. Match property type. Single family to single family. Don't compare a 3/2 to a 5/4.
4. Match condition. You're estimating the value after repairs — so your comps should be fully updated homes, not distressed ones.
5. Match size. Try to stay within 20% of the subject property's square footage. A 1,000 sqft home doesn't comp well against a 2,000 sqft home.
6. Average the sold prices. Take 3–5 of your best comps and average their sale prices. That's your ARV.

ARV Example

Let's say you're looking at a 3 bed / 2 bath, 1,400 sqft house in Cleveland, OH. You find these comps:

Average sold price = ($142,000 + $148,500 + $139,000) / 3 = $143,167

Your ARV is approximately $143,000.

Common ARV Mistakes

• Using active listings instead of sold comps. List prices are wishes. Sold prices are facts.
• Going too wide on radius. A comp 3 miles away in a different neighborhood tells you nothing.
• Using distressed comps. If your comp was also a fixer-upper, it'll drag your ARV down artificially.
• Ignoring condition adjustments. A fully updated comp is not the same as a basic renovation.
• Using old comps. Markets move. A comp from 3 years ago in a changing market can be wildly off.

ARV and MAO: The Full Formula

Once you have your ARV, you calculate your Maximum Allowable Offer (MAO):

The 0.65 (65%) is the standard wholesale multiplier, leaving room for the end buyer's profit and your assignment fee. For fix-and-flip deals, investors typically use 70%.

Calculate ARV Automatically

Pulling comps manually takes 20–30 minutes per deal. FlipScore does it in under 60 seconds — type in the address and get ARV, rehab estimate, MAO, and an AI deal score instantly.

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