After-Repair Value (ARV)
The estimated market value of a property after it has been fully renovated. ARV is the anchor number for every flip and wholesale offer.
After-Repair Value is what a property will sell for once it's been fully repaired and updated to market standard. It's derived from recent comparable sales of renovated homes in the immediate area — not active listings, and not the seller's asking price.
ARV anchors the whole deal: the maximum allowable offer, the flip's profit, and the wholesaler's spread are all calculated from it. An ARV that's even 10% optimistic can erase an entire margin, which is why conservative comps beat hopeful ones.
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