ARV — after repair value — is what the property sells for once it is fully renovated to the standard of the neighborhood. Every other number in a flip is derived from it, which is why inflated ARVs are the single most common reason deals die in due diligence.
Pulling comparable sales
- Sold in the last 6 months (12 in slow upstate submarkets).
- Within 0.5 miles in a city, 1 mile in suburbs — never across a school district or a highway.
- Within ±20% of subject square footage.
- Same property type, same story count, same basic layout.
- Renovated to retail finish — a distressed sale is not an ARV comp.
Adjusting the comps
Take three to five closed sales, then adjust each toward the subject. Typical adjustments in mid-priced New York markets:
| Difference | Typical adjustment |
|---|---|
| Living area | $40–$90 per sq ft of difference |
| Extra full bath | $8,000–$15,000 |
| Extra bedroom (with sq ft) | $5,000–$10,000 |
| Garage (1 car) | $8,000–$12,000 |
| Finished basement | $20–$35 per sq ft |
| Central air | $4,000–$7,000 |
Convert your ARV to price per square foot and compare it to the neighborhood's renovated range. If you are 15% above the best recent sale on the street, your ARV is wrong — the street is a ceiling.
Common ways ARV gets inflated
- 1Using active listings instead of closed sales.
- 2Comping to a nicer adjacent neighborhood.
- 3Averaging price per square foot across wildly different homes.
- 4Assuming an addition or a converted attic counts as full living area.
- 5Ignoring days-on-market — a comp that sat 180 days is a ceiling, not a target.
Document it
Write ARV as a range with the three comps that support it, each with address, sale date, price, sq ft, and your adjustment. Buyers who see your work trust your next deal. Buyers who see a round number and no evidence re-trade you at inspection.
Browse live off-market New York deals, or list one and get it in front of verified cash buyers.