ARV should be an evidence-based range, not a number pulled from whatever sold the highest in the neighborhood. The fastest operators use a repeatable process that starts with the exit buyer and works backward.
Before you look at comps, define the end state. Are you creating a clean, mid-market resale? A premium owner-occupant townhouse? A stabilized rental building? ARV depends on what you are actually delivering to the market.
Use recent sales that match the buyer audience, property format, and finish level you expect after renovation. Good ARV work is not about finding the highest sale. It is about finding the cleanest cluster.
Detached homes, luxury rehabs, stale sales, and different submarkets often push ARV in the wrong direction. Tracking rejected comps makes your underwriting stronger because it forces discipline.
A low, mid, and high ARV is more honest than a single-point estimate. Use the cleanest comp cluster to anchor the midpoint, then widen slightly for execution and market variance.
FAQ
Short answers to the questions operators and motivated sellers ask most often.
ARV stands for after repair value, which is the estimated value of a property after the planned renovation is complete.
No. The highest comp might reflect a different finish level, a stronger block, or a different buyer audience. ARV should come from the most defensible cluster of sales.
Next step
The workspace combines subject facts, comps, risk, valuation, and packet generation in one flow.