What Does ARV Mean

What is ARV and How Do You Calculate It?

In real estate the ARV or After Repaired Value is the definition that states the value of the property after it has been remodeled or “rehabbed”. Essentially this is a future value for the property  in it’s future condition.

A Very Basic ARV Formula

After your property is remodeled more than likely an appraiser will be asked to go out ot the property and determine its current value. This may be for your future buyer, possibly for your lender or perhaps for the real estate investor.

The ARV could simply be defined as follows: Purchase Price + Value From Remodel = ARV or After Repaired Value

The appraiser will also base the value by using comparables of recently sold properties as close to the subject property as possible with the sale dates being as recent as possible. The appraiser will use recent sold comparables of other property’s in “like” size and condition with the similar lot size.

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