ARV stands for After Repair Value. It is your best estimate of what a home will be worth after you fix it up — not what it is worth today, as-is.
As-is value versus ARV
Every fixer-upper really has two values. The as-is value is what it is worth right now, with the old kitchen and the worn carpet. The ARV is what it will be worth once the work is done and it looks like the nice homes nearby. Beginners often mix these two up and pay an as-is price expecting an after-repair return. Keeping them separate in your head is one of the most useful habits you can build, because almost every flip decision rests on the gap between the two.
Why ARV matters
If you plan to repair a home and then sell or rent it, the fixed-up value is the number that drives your whole plan. It tells you how much room you have between what you spend and what you can sell for. Guess the ARV too high and a good-looking flip can turn into a loss.
How to estimate ARV
The standard way is to look at comparable sales — homes near the property that are similar in size, age, and layout, and that have already been fixed up and sold recently.
- Find a few similar, recently sold, already-renovated homes nearby.
- Look at what they actually sold for.
- Use those sale prices to estimate what your home will be worth once it is fixed up too.
A worked example
You are looking at a tired home that needs work. Down the street, three similar homes that were already renovated sold for around 250,000 each. Those are your comps. So your ARV estimate is about 250,000 — that is what your home should sell for once it matches their condition.
Now you can plan backward: if the fixed-up value is 250,000, how much can you afford to pay and still leave room for repairs and profit? (That is exactly what the 70% rule answers.)
Keep it realistic
Use recent, truly similar sales, and lean conservative. Fixing a home to a higher standard than the comps will not always earn you more — buyers usually pay based on what nearby homes sell for. When in doubt, pick the lower end of your ARV range. A cautious ARV protects you; an optimistic one can talk you into overpaying.
How Underlisted helps
ARV works hand in hand with our free flip calculator, which uses your ARV to show a safe max offer. You can check any home free and see how the numbers come together before you commit to a single repair.
Takeaway: ARV is the fixed-up value of a home. Estimate it from recent, similar, already-renovated sales nearby.