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📚 Deal Analysis Guide

How to Calculate ARV (After Repair Value)

The step-by-step method flippers and wholesalers use to estimate what a property will be worth after renovation.

Quick Answer

To calculate ARV, pull 3–6 recent sold comps similar to your property, compute each comp's price per square foot (sale price ÷ sqft), average those figures, and multiply by your property's square footage. ARV = Average comp price per square foot × subject square footage. Example: comps averaging $200/sqft × a 1,500 sqft home = a $300,000 ARV.

What is ARV?

ARV (After Repair Value) is the estimated market value of a property after all planned renovations are complete — what it will sell for once it's fully fixed up.

Every flip and wholesale deal starts with ARV. It sets your Maximum Allowable Offer, your profit projection, and how much a lender will fund. Unlike current market value — which reflects today's condition — ARV looks forward to the renovated state, so it must be built from comps that are already in that condition.

Get ARV wrong and every downstream number is wrong. That's why professionals base it on sold comparables, not asking prices or gut feel.

The ARV Formula

ARV = Avg Comp PSF × Subject Sqft

Where PSF = price per square foot (sale price ÷ square footage)

Price per square foot normalizes properties of different sizes so you can compare them fairly. Average the PSF of your best comps, then scale to your property's footprint.

Important: Weight the most recent and most similar comps more heavily. A sale from last month two streets over is worth more than a sale from 11 months ago across a major road.

How to Calculate ARV in 5 Steps

1

Pull recent sold comps

Find 3–6 properties sold in the last 6–12 months, within ~1 mile, matched on type, beds, baths, sqft (±150), and year built (±10).

2

Filter to similar condition

Keep comps that are renovated or in the condition your property will be in after repairs. Drop distressed, over-improved, and non-arm's-length sales.

3

Calculate each comp's PSF

Divide each comp's sale price by its square footage to get price per square foot.

4

Average the PSF

Average the PSF across your best comps, weighting the most recent and most similar sales more heavily.

5

Multiply by your sqft

ARV = Average PSF × your property's square footage. That's your after-repair value.

Worked ARV Example

Subject Property: 1,500 sqft, 3-bed renovation

Three sold, renovated comps nearby:

  • Comp 1: $310,000 ÷ 1,550 sqft = $200.00/sqft
  • Comp 2: $296,000 ÷ 1,480 sqft = $200.00/sqft
  • Comp 3: $315,000 ÷ 1,575 sqft = $200.00/sqft

Average PSF

($200 + $200 + $200) ÷ 3 = $200/sqft

ARV

$200 × 1,500 = $300,000

From there, the Maximum Allowable Offer:

($300,000 × 70%) − $40,000 repairs = $170,000 MAO

Common ARV Mistakes to Avoid

  • Using listing prices instead of sold prices — list prices are wishful, not real.
  • Pulling comps that are too old (over 12 months) or too far away (over a mile in suburban markets).
  • Mixing in distressed or as-is sales when estimating renovated value.
  • Ignoring condition — a tired comp will understate ARV; an over-improved one will overstate it.
  • Stopping at one comp. Always triangulate with at least three.

Frequently Asked Questions

How do you calculate ARV?

Find 3–6 recent sold comps, compute each one's price per square foot, average them, and multiply by your property's square footage. ARV = Average comp PSF × subject sqft.

Can I calculate ARV without the MLS?

Yes — pull sold comps from Zillow, Redfin, and county records, or use a tool like DealBeast that aggregates multiple data sources. See our guide on running comps without the MLS.

What do I do with ARV once I have it?

Feed it into your MAO calculator and fix and flip calculator to find your maximum offer and projected profit.

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Last updated: June 2026