What is after-repair value (ARV)?
ARV is the number a cash offer starts from. Here's what it means and how to check whether it's fair.
No obligation. No pressure. Takes about 2 minutes.
The short answer
After-repair value, or ARV, is an estimate of what a house would sell for once it's fixed up, based on recent sales of similar, updated homes nearby. Investors use it as the starting point for a cash offer, then subtract repairs and their costs. It's an estimate, not an appraisal, so ask to see the comparable sales behind it.
Step by step
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1
Find comparable sales
Look for recent sales close by that match the house in size, bedrooms, bathrooms, age and style, and that sold in updated condition.
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2
Adjust for differences
A comparable with an extra bathroom, a garage, a bigger lot or a finished basement sold for more or less because of it. Those differences get priced in.
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3
Land on a range
The adjusted sales point to a value range for the house once it's repaired. The closer the comparables, the more reliable the range.
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4
Why it matters to you
A cash offer starts from ARV and works down, so a low ARV means a low offer. Our guide on how cash offers are calculated covers the rest of the math.
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5
Check it yourself
Ask which sales the ARV is based on. Look at recent sales on your street, and if better comparables exist, point them out.
Cash offer vs listing
Example: a $250,000 home
| Offer | $205,000 |
|---|---|
| Repairs | $0 |
| Commissions | $0 |
| Closing costs | $0 |
| You walk away with | $205,000 |
| In 7 to 14 days | |
| Sale price | $250,000 |
|---|---|
| Repairs | about $8,000 |
| Commissions | about $13,800 |
| Closing and holding | about $6,000 |
| You walk away with | about $222,200 |
| In 60 to 90 days | |
Example only. Your numbers depend on your home and market.
We show the value we start from, then the cash offer next to what listing could net, so you can see every step.
Frequently asked questions
Is ARV the same as market value?
No. Market value is what your house would sell for as it is today. ARV is the value after repairs, so for a home that needs work it's higher than today's value.
Who decides the ARV?
Whoever makes the offer estimates it. Different buyers can reach different numbers, which is why the comparable sales matter.
Can I question an ARV?
Yes. Ask which sales it's based on and why. If you know of closer or more similar sales, raise them.
Who are you?
We are real estate investors based in Baltimore, helping homeowners since 2016. We buy houses directly for cash. We are not a licensed real estate brokerage and do not list homes ourselves; if listing could get you more, we show you the math so you can choose.