What is ARV??? #realestate #REAL #money #realestateagent #wholesale #short #shorts #shortvideo #tips

17 Sept 2023 · 0 min

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Steve D Valentine (speaker) defines ARV (After Repair Value) and explains how to estimate it in practical terms. He emphasizes checking whether value can be added (renovations, adding square footage), whether comps can be pushed, and whether the neighborhood will support the upgraded value. He gives a concrete example: a 1,000 sq ft house compared to 2,000 sq ft comps and asks whether investing $100,000 to increase size/value would create additional value/income. The speaker references working with contractors (named Wendy) when evaluating these factors.

Questions this video answers

After Repair Value.

$100,000.

A 1,000 square foot house compared to 2,000 square foot comps.

An ARV is really, you know, the after repair value. But it depends on can I add value to the house, can I push the comps, can I add square footage in, is there value add to it and will the neighborhood support the value add? So those are all the things that we look at, like with Wendy, with contractors. Like, what if it's a thousand square foot house in a neighborhood that has 2,000 square foot comps, can we put $100,000 into it and bring it up to there and create some additional value and income on it?