Understanding After-Repair Value
After-Repair Value (ARV) is the estimated market value of a property after all renovations and improvements have been completed. It's the single most important number in any fix-and-flip or BRRRR deal.
Why ARV Matters
Without an accurate ARV, you're flying blind. Here's what depends on it:
- Purchase price decisions — knowing your ARV helps you determine the maximum you should pay
- Renovation budgets — the spread between purchase price and ARV defines your rehab budget
- Profit projections — your margin is directly tied to how well you estimate ARV
- Financing — hard money lenders typically lend 65-75% of ARV
How ARV Is Calculated
The traditional approach uses comparable sales (comps) — recent sales of similar properties in the same area. A good comp should be:
- Within 0.5 miles of the subject property
- Sold within the last 6 months
- Similar in size (within 20% of square footage)
- Same property type and bedroom count
- In similar or better condition post-renovation
The Problem with Manual Comps
Manually pulling comps is time-consuming and subjective. Two investors can look at the same property and arrive at very different ARVs because they:
- Cherry-pick comps that support their desired number
- Miss relevant sales in adjacent neighborhoods
- Don't properly adjust for differences in size, condition, or features
How iComps Solves This
iComps automates the entire ARV process using data-driven comp analysis. Our algorithm:
- Analyzes every recent sale in the area, not just a handful
- Applies objective similarity scoring based on size, distance, recency, and condition
- Adjusts for finish level differences between comps and your planned renovation
- Delivers a confidence-weighted ARV in seconds
The best deal analysis starts with the most accurate ARV. Everything else — your offer price, renovation budget, and profit margin — flows from this one number.
Getting Started
Whether you're analyzing your first deal or your hundredth, start with a solid ARV. Try iComps free and see how data-driven comp analysis changes your investing game.
