Calculate After Repair Value
The tools and resources to accurately evaluate your real estate deals.
What Is After Repair Value?
An after repair value (ARV) — or estimated future value — is how much a property is worth after making improvements or renovations.
There are several ways to calculate ARV. One method is multiplying the average price per square foot of comparable properties. Another method is to look at similarities between your home and local properties that have recently sold. Some features you can examine to determine your property’s ARV include:
- Condition: Include any upgrades, finishes, and additional features on the comparable property.
- Age: Ideally, the property you are comparing has an age difference between five to 10 years.
- Size: The square footage of the comparable home should be within 250 square feet of the size of your property.
- Construction and style: You should compare the craftsmanship of the two properties.
- Location: The comparable property should be within the same neighborhood or subdivision.
Most investors try to find at least three to six comparable properties to create an accurate estimate. After finding acceptable properties, you will average their sales price to determine the ARV of your own property.
At DoHardMoney, our Find-Fund-Flip System and Investor’s Edge software offer access to over 160 million property records to make it easy to find comparable properties in your area. Our software will also help you accurately calculate the repair value to make investing more straightforward for beginners and experts.
What Is ARV Used For?
Figuring out an accurate after repair value, or ARV, on your deal is the make-or-break skill for real estate investors. Once you have potential sellers reaching out to you, then it’s time to determine if any of those deals are worth pursuing. An accurate ARV helps you know what you can offer on the deal and still make a profit.
Many house flippers also use ARV to estimate the future price of a home as well as buy the property for a discount and secure funding for renovations. With an ARV, many flippers can purchase properties at lower prices to alleviate some of the financial risks. By using an ARV to estimate profits, if extra costs occur during the renovation process, it will not result in the investor losing money on their investment.
At DoHardMoney, we offer many unique tools and process for calculating ARV to keep you in the good deals and away from the bad ones. Here’s how:
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17-Point Value Certification Course.Become a master at determining ARV with the utmost speed and accuracy. You’ll learn the exact same process that we’ve been using for over a decade to verify property values. |
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Live Valuing Training. |
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Two-Part Evaluation Process.With every deal, we’ll do a preliminary Desktop Evaluation. If those numbers look good, we’ll send a local, licensed real estate agent to visit the property to confirm values. If they don’t agree, we’ll send out another real estate agent! There’s absolutely no guessing or compromising on this step. |
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Property Value Analysis Worksheet. |
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Watch Past Borrowers.Our Members Area includes recorded Desktop Evaluations we’ve done for past potential borrowers so you can know exactly what to expect. |
When you partner with DoHardMoney, we offer many tools and resources to make it easy to calculate a reliable estimate and forecast realistic profit predictions to find the best deals for you. We also offer our Find-Fund-Flip System, which is an all-in-one resource for finding and flipping properties to generate greater profits.
With our Find-Fund-Flip System, you can quickly identify potential investment properties in minutes without leaving your home. Gain an edge over the competition by working with DoHardMoney today.
OUR BORROWERS AVERAGE $39,714 PER COMPLETED DEAL.
THE SPEED TO COMPLETE YOUR DEAL.
Once you’ve placed an offer, you need to get values done fast so you can move forward—or risk losing the deal.
That’s why we’re committed to getting our Desktop Evaluations back to you in two business days and our On-Site Evaluations in three.
Stephen Will Make $40k on his fix & Flip
STRICT VALUES = LESS RISK.
Some hard money lenders want your property to fail. That way they collect your interest and loan costs and walk away with a property. That’s not us. We’re in this to change your life—not to mention it’s just better business to do right by you.
That’s why we’re conservative with valuing properties. Our typical process is to find three recently sold comparable properties and three on-market comparables. Then, we take the lowest one.
TRANSPARENCY.
When we do your Desktop Evaluation, our team member will do a screen recording of what they’re looking at and how they came up with their values. If your deal doesn’t qualify for a loan, you’ll know exactly what went wrong and how to find a better deal next time.
