After Repair Value (ARV) Calculator
This ARV estimator helps you approximate a property's market value after repairs (After-Repair Value). It provides multiple approaches: price-per-square-foot, average comparable sale, adjusted ARV (percent and repairs), and the 70% investor rule to derive a conservative maximum purchase price.
This tool is intended for preliminary analysis and deal screening. It is not a certified appraisal. Use a licensed appraiser or local valuation expert for lending, legal, or formal valuation needs.
Estimate ARV by applying an average price-per-square-foot (from comparable sales or market data) to the subject property area.
Inputs
Results
Estimated After-Repair Value (ARV)
$225,000.00
| Output | Value | Unit |
|---|---|---|
| Estimated After-Repair Value (ARV) | $225,000.00 | USD |
Visualization
Methodology
Price-per-square-foot method: multiply an average market price per square foot (derived from sales of similar properties) by the subject property's finished area. This is commonly used when comparable sales are consistent in size and condition.
Average comparable sale method: derive a per-square-foot rate from the average sale price and size of comparable properties, then apply that rate to the subject property.
Adjusted ARV: apply a percentage adjustment to the base ARV to reflect market movement, neighborhood trends, or differences in quality; add quantified repair value when repairs directly increase market value.
70% rule (investor heuristic): calculates a conservative maximum purchase price based on ARV to allow room for repairs, holding costs, and desired profit. This is a rule-of-thumb and not a substitute for detailed financial underwriting or appraisal.
Worked examples
Example 1 — Price-per-sqft: If the market avg is $160/sqft and the subject is 1,500 sqft, ARV = $160 × 1,500 = $240,000.
Example 2 — 70% rule: With ARV $240,000, repairs $15,000, and purchase costs $5,000, max purchase = (240,000 × 0.7) − 15,000 − 5,000 = $148,000.
Further resources
Expert Q&A
Is this estimator a formal appraisal?
No. This is a modeling tool for preliminary valuation and deal screening. It does not replace a licensed appraisal or a market analysis performed by professional appraisers.
How accurate are the results?
Accuracy depends on input quality: representativeness of comparable sales, correct size measurements, and realistic repair estimates. Use local recent comps and, when available, adjust for material differences. Expected uncertainty varies by market; always include a sensitivity margin.
Which method should I use?
Use the price-per-sqft method when comps are consistent. Use the average-comp method when you have average comp prices and sizes. Use the adjusted method to include verified repair value or documented market adjustments. Use the 70% rule only for quick investor screening, not formal valuation.
Are there recommended data or quality practices?
Yes. Prefer recent (typically last 3–6 months) comparable sales, control for key factors (size, condition, lot, location), and document assumptions. For compliance and traceable measurement practices, follow relevant measurement and quality standards.
Should I rely on this for lending or legal matters?
No. Lenders and courts typically require a licensed appraisal prepared under recognized appraisal standards. Use this tool for internal analysis only.
Sources & citations
- National Institute of Standards and Technology (NIST) — https://www.nist.gov
- International Organization for Standardization (ISO) — https://www.iso.org
- IEEE Standards Association — https://standards.ieee.org
- Occupational Safety and Health Administration (OSHA) — https://www.osha.gov