ARV
Wholesaling & Deal SourcingARV (After-Repair Value) is the estimated market value of a property once it has been fully renovated — the number an appraiser would assign after the work is done. ARV is the foundation of every fix-and-flip, BRRRR, and wholesale deal: your offer price, your rehab budget, and your exit strategy all derive from it.
How it works. You determine ARV by running comparable sales (“comps”) — recently sold properties in the same neighborhood with similar size, bedrooms, bathrooms, and condition, ideally sold within the last 90-180 days. Adjust for differences (square footage, garage, updates) to arrive at a realistic, defensible post-renovation value. Overestimating ARV is the most common and most expensive mistake new investors make.
| Line item | Amount |
|---|---|
| Estimated ARV (comps-supported) | $300,000 |
| Repairs needed (contractor bid) | $40,000 |
| 70% of ARV minus repairs (MAO) | $170,000 |
| Your offer to seller | ~$170,000 or less |
ARV is an estimate, not a guarantee. Market conditions shift, contractors find hidden problems, and comps are backward-looking. Always run multiple comps, get a contractor’s repair estimate before locking in an offer, and leave a margin of safety — a deal that only works at the absolute top of the comp range is a deal built on hope.
For the full methodology — including how ARV feeds into the MAO formula and how to estimate repairs — see ARV, MAO, and repair estimates.