How to pick comps for ARV
ARV is only as good as the comps behind it. Appraisers and lenders will look for renovated sales that a buyer would realistically choose between, so that is the standard to hold yourself to.
- Sold, not listed: use closed sales; active listings show asking prices, not value.
- Recent: within the last 3–6 months, or up to 12 months in slow or rural markets.
- Close: ideally within half a mile to a mile, in the same subdivision or school district, without crossing major roads or rail lines.
- Similar: within about 20% of the subject's square footage, with the same bed/bath count, style and lot type.
- Renovated: the comps should be in the condition your buyer will deliver — that's the point of an after-repair value.
Price per square foot vs. average sale price
Averaging price per square foot adjusts for size differences between comps, which is why the calculator uses it whenever you enter square footage. Without square footage it falls back to the simple average sale price. Check both against the median sale price — if one comp is far off the others, it may not be a true comparable.
Price per square foot is a shortcut, not an appraisal. Features like a garage, basement, extra bathroom, pool or lot size can move value more than square footage alone, so adjust your final number with judgment.
Why ARV matters so much to your end buyer
Fix-and-flip lenders size loans off ARV. Many cap the loan at roughly 70–75% of ARV even when the deal's cost would justify more, so an optimistic ARV means your buyer brings more cash than expected — or can't close. Run your ARV through the financing module to see the loan your buyer can actually get.
Common ARV mistakes
- Using the highest sale in the neighborhood instead of the typical renovated sale.
- Mixing unrenovated or distressed sales into your comps.
- Ignoring days on market — slow-selling comps signal softer demand.
- Forgetting that a buyer's appraisal, not your spreadsheet, decides the loan amount.
Frequently asked questions
What is ARV in real estate?
ARV stands for after-repair value: the estimated market value of a property after all planned renovations are complete. Wholesalers, flippers and hard-money lenders use it to set offer prices and loan amounts.
How many comps do I need to calculate ARV?
Use three to five renovated comparable sales. Fewer than three makes the estimate fragile; more than five usually means you're reaching for less similar properties.
Is ARV the same as an appraisal?
No. ARV is your estimate. A lender will usually order its own appraisal or valuation of the after-repair value, and the loan is sized on that number.
What percentage of ARV should I offer?
The 70% rule says a buyer can pay up to 70% of ARV minus repairs. As a wholesaler you also subtract your fee. The detailed method in this calculator works backward from your buyer's real costs instead.