ARV — After Repair Value — is the estimated market value of a property after all planned renovations are complete. It's the most important number in any fix and flip or BRRRR deal. Get it right and you make money. Get it wrong and you don't.
How to Calculate ARV Using Comparable Sales
- Find 3-5 comparable sales (comps) — Closed sales only (not listings). Within 0.5 miles, sold within 90 days, similar square footage (±20%), same bed/bath, similar lot size.
- Confirm condition similarity — Your comps should be fully renovated or updated, matching the expected condition of your finished product.
- Calculate price per square foot — Take each comp's sale price ÷ square footage. Average the results.
- Apply to your subject property — Average comp $/sqft × your property's square footage = baseline ARV.
- Make adjustments — Add/subtract for significant differences: garage (±$10-25K), basement (±$15-40K), pool (±$10-30K), extra bedroom (±$10-20K).
Critical ARV mistakes: Using Zillow Zestimate (not comps), using active listings (not sold comps), comparing to properties in different neighborhoods, or stretching to use old comps (90+ days). The appraiser at the end of your deal will use the same methodology — get it right upfront.
Where to Pull Comps
- MLS (best source) — Get an agent to pull comps for you, or use Redfin which shows sold prices
- Redfin/Zillow — Filter for "sold" and set your date range to 90 days max
- Propstream/PropWire — Paid platforms that give full sold comp access
- County assessor — Public record of all transactions
ARV for BRRRR vs. Fix and Flip
For fix and flip, ARV determines your sale price. For BRRRR, ARV determines your refinance value. Both require the same accuracy, but the implications differ. A conservative ARV for a flip means a smaller profit. A conservative ARV for BRRRR means you may not recover all your capital in the refinance — which affects whether the BRRRR achieves its goal.