ARV (After Repair Value)

ARV stands for After Repair Value — the projected market value of a property once all planned renovations and repairs are finished. It is the single most important number in any fix-and-flip or wholesale deal because every other calculation (your offer price, projected profit, and financing terms) flows from it.

How ARV Is Calculated

ARV is determined by analyzing comparable sales (comps) — recently sold properties in the same area that are similar in size, style, condition, and features to what the subject property will look like after rehab. A reliable ARV estimate typically uses 3–6 comps that sold within the last 90–180 days and are located within a 0.5–1 mile radius. The formula is straightforward:

ARV = Average Adjusted Price Per Square Foot of Comps × Subject Property Square Footage

For example, if three comparable renovated homes in the neighborhood sold at an average of $175 per square foot, and the subject property is 1,400 sq ft, the ARV would be approximately $245,000.

Why ARV Matters So Much

Every downstream number depends on ARV accuracy. If you estimate ARV at $250,000 but the property actually sells for $210,000 after rehab, a deal that looked profitable on paper turns into a loss. Conversely, being too conservative with ARV might cause you to pass on deals that would have been profitable. Professional investors often cross-reference multiple data sources — MLS sold data, county records, and on-the-ground market knowledge — to triangulate a reliable ARV.

The 70% Rule Connection

Most fix-and-flip investors use the 70% rule as a quick screen: Maximum Allowable Offer = (ARV × 0.70) – Repair Costs. So on a property with a $245,000 ARV and $40,000 in estimated repairs, your MAO would be $131,500. This bakes in a margin for closing costs, holding costs, agent commissions, and profit.

How Vortonic Helps

Vortonic's AI-powered ARV engine pulls real-time MLS data and public records to automatically identify the best comparable sales for any address. Instead of manually searching comps and adjusting for differences, Vortonic's platform delivers a confidence-weighted ARV estimate in seconds — along with the underlying comps so you can verify the analysis. This lets investors evaluate dozens of leads per day without sacrificing accuracy.