Comparative Market Analysis (CMA) for Investors
A CMA is more than a real estate agent's tool — it's an investor's secret weapon for accurate valuations.
← Back to Knowledge Base
Property Valuation6 min read
After Repair Value (ARV): The Foundation of Every Deal
ARV is the single most important number in a fix-and-flip deal. Master the art and science of estimating it accurately.
After Repair Value is the estimated market value of a property after all planned renovations are complete. It is the anchor point for every financial decision in a flip — from your maximum offer price to your renovation budget to your expected profit.
The most reliable method for estimating ARV is the comparable sales approach. You identify 3–6 recently sold properties (ideally within the last 90 days) that are similar in size, age, condition, and location to what your subject property will look like after renovation. Adjustments are made for differences in square footage, lot size, bedroom and bathroom count, garage, and specific finishes.
Common mistakes include using comps that are too old (market conditions shift quickly), comparing properties in different school districts or neighborhoods, ignoring the condition gap between your planned renovation and the comp's actual condition, and cherry-picking the highest comp while ignoring lower sales.
Professional investors cross-reference multiple data sources: MLS sold data, county tax records, and automated valuation models (AVMs). They also physically drive the comp properties when possible to verify condition. At Vortonic, our AI-powered valuation engine analyzes hundreds of data points to generate institutional-grade ARV estimates, reducing the subjectivity that plagues manual comps.
Related Articles