What is ARV (after-repair value)?
Definition
After-repair value (ARV) is the estimated market value of a property once planned renovations are complete, based on comparable sales of similar, already-renovated homes nearby. Investors use ARV to back into a maximum purchase price for flips and BRRRR deals.
Formula
Max offer (70% rule) ≈ 0.70 × ARV − Repair costs
Example
Worked example
ARV of $400,000 with $50,000 in repairs → max offer ≈ 0.70 × 400,000 − 50,000 = $230,000. (Example figures; rules of thumb vary.)
How ReSharpe calculates this
ReSharpe values deals from live MLS comps and reports a defensible price band rather than a single ARV guess, and computes a max offer that hits your return targets. See comps and the methodology.
Related: Comps · Cap rate · GRM
Frequently asked questions
- What is the 70% rule with ARV?
- A flip rule of thumb: a maximum offer of roughly 70% of ARV minus repair costs. On a $400k ARV with $50k repairs, that's about 0.70 × 400,000 − 50,000 = $230,000. It's a screen, not a substitute for full underwriting.
- How is ARV estimated?
- From comparable sales of renovated, similar properties nearby — ideally homes in the condition the subject will be in after repairs, not its current state.
See these numbers computed on a real South Florida listing.
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