What is ARV

What is ARV? ARV stands for After Repair Value and is the amount that the property is worth after it is repaired. To put it another way, ARV is the value that the property could sell or appraise for. It is determined by three min factors.  

First, you need to determine what you will do to improve the property. This would include any upgrades or additions to the property, as well as the quality of the repairs.

Second, you must research the comps for your property. Comps are properties that are similar to yours, but are finished. It is imperative that comps are in the same area, approximately the same size, and have a relevant sales date that is within the last 3 to 6 months.

Finally, take into consideration any concessions. Concessions are when the seller helps the buyer purchase the property. Keep in mind that any contributions will impact your bottom line. 

Be honest and realistic!

It is imperative that you are honest and realistic with your numbers! The more truthful you are, the better it is. An honest ARV leads to more deals, more loan approvals, better terms , and more money!

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