Definition
As-repaired value (ARV) is what a property is worth after all renovations are complete. It's critical for fix-and-flip investments—buy below purchase price plus renovation costs, sell at ARV for profit. Overestimating ARV kills projects.
Not sure where this fits?
Answer a few questions and we’ll open the path that fits, at the right step.
Find my pathAbout this term
As-repaired value estimates property value after rehabilitation work is complete. This value is critical for investors evaluating purchase decisions—they compare as-repaired value against purchase price plus renovation costs to determine profit potential. As-repaired value assumes properties are in good condition with deferred maintenance addressed. Accurately estimating as-repaired value is critical for successful fix-and-flip operations.
Pro Tip
Use conservative ARV estimates for fix-and-flip analysis. Overestimating ARV is the primary reason flip projects lose money. Better to underestimate and be pleasantly surprised.
Example
A distressed property with as-is value of $280,000 is estimated to have as-repaired value of $400,000 after $80,000 renovations, supporting $40,000 profit potential.