ARV: Everything You Need To Know About After-Repair Value
Author:
Sidney RichardsonFeb 29, 2024
•7-minute read
If you’re thinking about flipping a house or even just planning to remodel your own home, you may have heard of after-repair value, also known as ARV. After-repair value is a measure used by real estate investors and house flippers to estimate the future value of a property after renovations.
Experienced flippers can calculate ARV to predict the future value of a home and secure financing for repairs. This method of assessing value can be very valuable to regular homeowners, too, if they’re looking to make changes to their house that will increase its value.
So, what exactly does ARV mean? If you’re interested in learning more about ARV and how to use it, read on for our guide to after-repair value.
What Is After-Repair Value (ARV) In Real Estate?
ARV is the estimated value of a property after completed renovations, not in its current condition. House flippers commonly use ARV as a way to gauge the worth of a fixer-upper property, including how much it can be bought, and then resold for after repairs. The repairs or renovations can be anything from installing new kitchen appliances to replacing the roof.