# what does arv mean in real estate

After-repair value

• ### What is ARV in real estate and why is it important?

• What Does ARV Mean in Real Estate and Why is it Important? In short, in real estate investing, the acronym ARV stands for After Repair Value, or the estimation of what a property will be worth once all repairs, updates, and add-ons are done.

• ### How do you calculate ARV in real estate?

• To calculate the ARV, investors can follow this formula: (Sale Price) + (Value of Repairs) = After Repair Value After using the above ARV calculator, investors can then apply the 70 percent formula: (ARV x.70) ?Repair Cost = Maximum Purchase Price

• ### What is ARV (After repair value)?

• After Repair Value (ARV) is the property value after a property has been repaired, improved, or renovated. The formula to calculate the ARV is the property initial value plus the value of renovations. For example, if a property initial value upon purchase was \$100,000, and an investor spent \$20,000 worth of renovations, the ARV is \$120,000.

• ### Can I make an offer on a property with a high ARV?

• Properties with a relatively high ARV may also require some adjustments when looking at the 70% rule. When it comes to high-value properties, investors may not be able to make offers that align with the formula. For example, if a property has a market value of \$600,000, repairs will cost \$75,000, and the ARV is \$800,000.