How to Calculate ARV: investor-focused explanation
To calculate ARV, find similar renovated sold comps, compare size and condition, calculate price per square foot, and apply a realistic resale value to the subject property.
Step 1: Find similar sold comps
Use nearby sold properties with similar beds, baths, square footage, property type, and sale date.
Step 2: Separate renovated and as-is comps
ARV should represent the finished resale value. Distressed comps can provide context but should not drag down retail ARV unless no better comps exist.
Step 3: Apply investor judgment
Review photos, condition, location, lot differences, and market momentum before trusting the number.
Frequently Asked Questions
Three strong comps are ideal, but one or two strong comps may be useful when they closely match the subject property.
As-is comps should usually not drive post-repair ARV unless there are no renovated or average comps available.
Yes. Dealzo analyzes comps and lets investors adjust selected comps for a more realistic ARV.
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