#AskBP 012: How Do I Determine the After Repair Value (ARV) of a Property?

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The ARV (After Repair Value) is one of the most important numbers to know, whether you are a flipper, landlord, or wholesaler. On this episode of the #AskBP Podcast, learn how to find the ARV through the use of comps, as well as a discussion on where to find the perfect comps for any property. Stay tuned!

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About Author

Brandon Turner

Brandon Turner (G+ | Twitter) spends a lot of time on BiggerPockets.com. Like... seriously... a lot. Oh, and he is also an active real estate investor, entrepreneur, traveler, third-person speaker, husband, and author of "The Book on Investing in Real Estate with No (and Low) Money Down", and "The Book on Rental Property Investing" which you should probably read if you want to do more deals.

3 Comments

  1. Darren Sager

    I still think it’s vital for you to consider the existing inventory on the market when trying to determine ARV and here’s why: If you can read the data and understand the length of time that the home has been on the market it can give you insight as to demand at that price point, along with looking at the sold property. By understanding the current available homes can help you determine where your pricing should also be to show your home as the best value. The homes with the perceived best value sell the fastest. So even if lets say there are 3 similar homes, all in the same area, school district, etc. in the same condition all priced at $350,000, and they’re all just sitting there for 180 days, you should know that if you price yours at $350,000 yours will sit there too in most cases, even if all the similar sold properties went for $365,000 or around that number. You’ll need to be priced below the others to show better value to sell your property faster. Perhaps at $339,000 or whatever need be. Also don’t forget time of the year can be a factor upon time on market.

    • Matthew Nixon

      Agreed Darren Sager. I look at actives to cross reference the value I determine from the sold comps to see if the property would be competitively priced compared to the inventory currently on the market. Also, looking at the days on market and whether property is selling above or below asking price is a good indicator of which way the market is heading.

  2. Peter Philando

    I have recently started paying attention to the listing properties when doing ARV. I have access to MLS and it is extremely useful in helping to quickly evaluate a potential deal. The average days on the market is a very good metric to note both for sold and currently listed properties when figuring ARV.

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