How ARV is estimated
ARV = average price per square foot of the comps × your property’s square feet
After-repair value is what the property should sell for once the work is done. The estimate comes from comps: recently sold homes that are close by, similar in size and layout, and already in the condition yours will be in after renovation.
Choosing good comps
- Sold, not listed. Asking prices are hopes. Use closed sales from the last three to six months.
- Close. The same neighborhood or subdivision, ideally within half a mile, and on the same side of any major road or school boundary.
- Similar. Within about 20% of the size, with the same number of bedrooms and bathrooms, and of a similar age and style.
- Renovated. Comps should match your finished condition, not the current one.
Why the range matters
The calculator shows a low and a high estimate alongside the average. If your deal only works at the high end, it does not work. Experienced flippers underwrite to the conservative end of the range and treat anything above it as a bonus.
The limits of price per square foot
It is a starting point. It does not account for a garage, a finished basement, a bigger lot or a busy street. Adjust for differences like these, or better, ask a local agent for a comparative market analysis before you commit.