What is ARV in Real Estate? How We Calculate After Repair Value

ARV Defined: After Repair Value

After Repair Value, or ARV, is the estimated market value of a property after all planned renovations and repairs are completed. It is the single most important number in any real estate investment analysis because it determines how much you can sell or refinance the property for once the work is done. Every flip profit calculation, BRRRR refinance projection, and wholesale deal evaluation starts with ARV.

For example, if you buy a distressed property in Rosedale for $100,000, invest $40,000 in renovations, and the renovated property is worth $195,000, then the ARV is $195,000. Your profit potential is the spread between your all-in cost ($140,000) and the ARV, minus selling costs.

Why ARV Accuracy Matters

An inaccurate ARV can turn a profitable deal into a money pit. Overestimate ARV by even 10% and your projected $50,000 flip profit can shrink to $15,000 -- or disappear entirely. Underestimate ARV and you might pass on a deal that would have been your best investment of the year.

In Baltimore County's diverse sub-markets, ARV can vary significantly within a short distance. A renovated 3-bedroom in Dundalk might be worth $210,000 while an identical home two miles away in Turner Station might only appraise at $160,000. Neighborhood-level knowledge is essential for accurate ARV calculations.

How to Calculate ARV Step by Step

Step 1: Identify comparable sales. Pull recent sales (closed within the last 90-180 days) of renovated properties within a half-mile to one-mile radius of your subject property. Focus on homes with similar square footage (within 200 square feet), the same bedroom and bathroom count, and comparable lot sizes.

Step 2: Adjust for differences. No two comps are identical. Adjust for differences in square footage (roughly $50-$80 per square foot in Baltimore County), additional bathrooms ($5,000-$10,000 value), garage vs no garage ($5,000-$15,000), finished basement ($10,000-$20,000), and overall finish quality.

Step 3: Weight your comps. The most recent sales and the closest in proximity to your subject property carry the most weight. If you have five comps, give the two most relevant ones 60% of the weight and spread the remaining 40% across the others.

Step 4: Determine a range and a target. Your ARV should be expressed as a range initially, then narrowed to a target based on your planned renovation scope. If comps support $190,000-$215,000 and you plan a full cosmetic rehab with mid-grade finishes, target the middle of that range at $200,000-$205,000.

Common ARV Mistakes Investors Make

Using comps that are too far away geographically is the number one mistake. In Baltimore County, crossing a major road or school district boundary can shift values by $20,000 or more. Stay tight on your comp radius.

The second mistake is using comps that are too old. The Baltimore market has been appreciating at 3-5% annually, so a comp from 12 months ago may understate current values. Conversely, using a comp from a temporarily hot micro-market can lead to overestimation.

Ignoring the difference between retail-quality renovations and investor-grade rehabs is another common error. A home renovated with high-end fixtures and custom finishes will sell for more than one with builder-grade materials. Make sure your comps reflect the quality level you plan to deliver.

Tools and Resources for ARV Calculation

MLS access is the gold standard for comp data. If you do not have MLS access, Redfin, Zillow, and Realtor.com provide recent sales data. Maryland property records are publicly available through the Maryland Department of Assessments and Taxation (SDAT) website. Baltimore County also provides online property data through its GIS portal.

For investors working with wholesalers, the wholesaler should provide comparable sales data with every deal. At Impact House Deals, we include a full comp analysis with each property we send to our buyer list, including photos of comp interiors so you can assess finish quality.

How Impact House Deals Calculates ARV

Our team runs a thorough comp analysis on every property we wholesale. We pull MLS data, verify with public records, drive the neighborhood to assess condition of surrounding homes, and consult with local appraisers when needed. We are conservative with our ARV estimates because our reputation depends on our buyers making money. If the numbers do not work, we do not send the deal. Join our buyer list at impacthousedeals.com to receive deals with transparent, vetted ARV analysis.