After-repair value
What a property will be worth after renovations are finished. Flippers back into their max purchase price from this number.
Your Room opens on showings and offers, with everything before the listing already ticked.
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See how it worksWhere this comes up: on the market
Part 1 of 4
Why a seller cares
When a flipper offers on your home, they started from what it will be worth fixed and worked backward. Knowing the ARV they used tells you what discount you are being offered and why.
Part 2 of 4
A simple example
Renovated homes on your street sell for $300,000. A flipper offers $185,000 for yours, which needs about $50,000 of work.
| The flipper's arithmetic | The number |
|---|---|
| ARV, from the renovated comps | $300,000 |
| Minus the rehab | $50,000 |
| Minus profit, holding and selling costs | About $65,000 |
| The offer | $185,000 |
An investor's offer is the ARV with everything they need taken out of it.
Part 3 of 4
What people get wrong
That the investor's ARV is what your home is worth. It is what it will be worth after their $50,000 and their months of work.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines after-repair value in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.