Top things that affect ARV?

Question

Hi,

Wondering if you all have the top things to focus on that affects the ARV during a Flip or BRRRR. Example - Flooring, appliances, windows, countertops, HVAC, bathroom #s, bedroom #s, etc.

And some things that first timers focus on that don't affect ARV at all or very little.

Thanks for the help!

River Sava · Answer

Hey Joshua -

AS others have mentioned, I'd suggest focussing on updating kitchens, appliances, windows, cabinetry, and bathrooms. Also, quality flooring (hardwood, tile, etc) helps. If you have the bandwith, adding bedrooms/bathrooms or a new HVAC can significantly increase ARV.

First-timers often over-focus on minor cosmetic changes like new paint, luxury upgrades that aren't necessary for the area, and personal preferences that don't align with market trends.

Let me know if you have further questions.Good luck!

Chris Seveney · Answer

If you can easily touch it and feel it, it affects value.

Jake Baker · Answer

@Joshua Sun

Things that drive the ARV the most - roof, plumbing, flooring, paint

Things that don’t drive ARV as much - windows, landscaping, driveway

Andrew Syrios · Answer

The key features are the most important (square footage, age, condition whether it has a basement/garage, etc.) And of course the general location and specific location (is it on busy street, near train tracks, transformer substation, etc.)

After that, I would say the quality of the kitchen and bathrooms as well as the master bedroom (is there a walk in closet).

Then HVAC. Then probably whether yard is fenced, etc. It varies but that's probably the list I'd give.

Jake Baker · Answer

@Joshua Sun

The appraisal is often the biggest wild card in the BRRRR process for SFR. The value of your house is essentially determined by the opinion of one person. I will deep clean the property and lightly stage it before the appraiser comes. The little things can help.

Top things that affect ARV?

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