If you have ever tried to analyze a house flip deal, you have probably heard the term ARV thrown around. ARV stands for After Repair Value — and it is the single most important number in any fix and flip investment.

Get the ARV right, and you protect your profit. Overestimate it, and you could lose tens of thousands of dollars on a single deal. This guide explains exactly what ARV means, how to calculate it accurately, and how to use it with the 70% rule before making any offer.

What Is ARV (After Repair Value)?

ARV is the estimated market value of a property after all planned renovations are completed. It is not what the property is worth today in its current distressed condition — it is what it will be worth once you have fixed it up and listed it for sale.

ARV is determined by analyzing comparable sales — also called comps — which are similar properties in the same neighborhood that have recently sold in good condition.

How to Calculate ARV: Step by Step

You calculate ARV by finding comparable sold properties and adjusting for differences. Here is the process:

1. Find 3-5 comparable sales within a 0.5-1 mile radius of your subject property, sold within the last 90 days.
2. Match on key features: similar square footage (within 15-20%), same number of bedrooms and bathrooms, similar lot size, same property type (single family, etc.).
3. Look at sold price per square foot for each comp. Average them together.
4. Multiply the average price per square foot by your subject property’s square footage.
5. Adjust for condition — if your post-renovation home will be upgraded (new kitchen, bathrooms), adjust upward slightly. If comps are nicer, adjust down.

Example:

• 3 comps sold at $145/sqft, $152/sqft, $148/sqft
• Average: $148/sqft
• Your property: 1,650 sqft
• ARV = $148 x 1,650 = $244,200

Where to Find Comps

You need access to actual sold data — not just listing prices. Here are the best sources:

• Zillow — Filter by “Sold” and set date range to last 90 days. Free but sometimes delayed.
• Redfin — More accurate than Zillow in many markets. Free.
• MLS (Multiple Listing Service) — Most accurate. Access through a licensed real estate agent or by getting your own license.
• PropStream / BatchLeads — Paid tools used by professional investors. Worth it if you are doing multiple deals per year.

Common ARV Mistakes That Cost Investors Money

Overestimating ARV is the number one reason new house flippers lose money. Here is what to avoid:

• Using active listings as comps — A house listed at $300,000 does not mean it will sell for $300,000. Only use sold prices.
• Using comps that are too far away — Neighborhood matters enormously. A comp 2 miles away may be in a completely different market.
• Ignoring condition differences — If your comp has a newly remodeled kitchen and yours will not, your ARV needs to be lower.
• Using stale data — Markets change fast. Comps older than 90 days may not reflect current conditions.
• Mixing property types — Never use a condo sale to estimate ARV for a single-family home.

ARV and the 70% Rule

Once you know the ARV, you can apply the 70% rule to determine the maximum price you should pay for the property:

Maximum Allowable Offer (MAO) = (ARV x 70%) – Repair Costs

If your ARV is $244,200 and your estimated repair cost is $40,000:

• MAO = ($244,200 x 0.70) – $40,000
• MAO = $170,940 – $40,000
• MAO = $130,940

Do not pay more than $130,940 for this property if you want a safe profit margin.

Calculate Your Flip Profit Instantly

Key Takeaways

• ARV is the estimated value of a property after renovations, not its current value.
• Always base ARV on recently sold comparable properties — not listings.
• Use comps within 0.5-1 mile radius, sold within 90 days, with similar size and features.
• An overestimated ARV is the most common reason new flippers lose money.
• Once you have ARV, apply the 70% rule to find your maximum offer price.

The more accurately you estimate ARV, the more confidently you can make offers and protect your profit on every deal. Use our free calculator above to run the full numbers — including all holding costs, closing costs, and agent commission — before committing to any flip.