Free Arv Calculator

After Repair Value (ARV) Calculator

function calculateARV() { var comp1 = parseFloat(document.getElementById('comp1Price').value); var comp2 = parseFloat(document.getElementById('comp2Price').value); var comp3 = parseFloat(document.getElementById('comp3Price').value); var adjustment = parseFloat(document.getElementById('conditionAdjustment').value); var validComps = 0; var totalCompsValue = 0; if (!isNaN(comp1) && comp1 > 0) { totalCompsValue += comp1; validComps++; } if (!isNaN(comp2) && comp2 > 0) { totalCompsValue += comp2; validComps++; } if (!isNaN(comp3) && comp3 > 0) { totalCompsValue += comp3; validComps++; } if (validComps === 0) { document.getElementById('arvResult').innerHTML = 'Please enter at least one valid comparable sale price.'; return; } var averageComps = totalCompsValue / validComps; if (isNaN(adjustment)) { adjustment = 0; // Default to 0 if adjustment is not a number } var arv = averageComps * (1 + adjustment / 100); document.getElementById('arvResult').innerHTML = 'Estimated After Repair Value (ARV): $' + arv.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }); } // Initial calculation on page load for default values window.onload = calculateARV;

Understanding the After Repair Value (ARV)

The After Repair Value (ARV) is a critical metric for real estate investors, particularly those involved in house flipping or extensive renovations. It represents the estimated market value of a property after all necessary repairs and improvements have been completed. Essentially, it's what the property is expected to sell for once it's in its optimal, renovated condition.

Why is ARV Important?

For investors, ARV is the cornerstone of profitability. It helps determine:

• Maximum Offer Price: Knowing the ARV allows investors to calculate the highest price they can pay for a distressed property while still achieving their desired profit margin after accounting for repair costs, holding costs, and selling expenses.
• Financing: Lenders for fix-and-flip loans often base their loan amounts on a percentage of the ARV, not just the current "as-is" value.
• Project Viability: It helps assess whether a renovation project is financially sound before committing significant capital.

How to Estimate ARV Accurately

The most reliable way to estimate ARV is by conducting a thorough comparative market analysis (CMA). This involves looking at recently sold properties (comparable sales or "comps") in the immediate vicinity that are similar in size, age, number of bedrooms/bathrooms, and features, and are already in excellent, renovated condition. Our calculator uses this principle by averaging the prices of up to three comparable sales.

Key factors to consider when finding comps:

• Location: Comps should be as close as possible to your subject property, ideally within a half-mile radius.
• Recency: Look for sales within the last 3-6 months. Older sales may not reflect current market conditions.
• Condition: The comps should be in a similar, fully renovated condition to what your property will be after repairs.
• Features: Match as many features as possible – square footage, lot size, number of beds/baths, garage, pool, etc.

Using the ARV Calculator

Our ARV calculator simplifies this process by allowing you to input the sales prices of up to three comparable, renovated properties. The calculator then averages these values to give you a baseline ARV.

• Comparable Sale Prices: Enter the final sales price of recently sold, fully renovated homes that are similar to your property. The more accurate and relevant your comps, the more precise your ARV will be.
• Property Condition Adjustment (%): This optional field allows you to fine-tune the ARV. If you believe your renovated property will be slightly superior to the average comp (e.g., higher-end finishes, unique features), enter a positive percentage (e.g., 5 for 5%). If you anticipate it being slightly less desirable or smaller, enter a negative percentage (e.g., -2 for -2%). This helps account for nuances not captured by a simple average.

Important Considerations

While this calculator provides a valuable estimate, ARV is not an exact science. Market conditions can change, and unforeseen issues can arise during renovations. Always use the ARV as a guide and combine it with a thorough understanding of your local market, a detailed repair estimate, and a conservative approach to your financial projections.