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You can use ARV to identify which upgrades will bring the highest return on your investment.
Most people think the profit in real estate comes from buying low and selling high. While that’s true, there’s one number that can tell you exactly how much your property could be worth before you even start renovations. It’s called the After Repair Value, or ARV, and it’s the key to planning upgrades that actually pay off. If you’ve ever wondered whether a renovation will increase your property’s value enough to make it worth the cost, ARV is the answer.
Why ARV matters. The after repair value is the estimated value of your property after all planned repairs or improvements are complete. Knowing this number before you start helps you make smarter investment decisions. It can prevent you from overspending on renovations that won’t bring a high return and ensure you focus on changes that will truly raise your property’s value.
How ARV is calculated. To determine ARV, you compare your property to similar homes in your area that have recently sold. These “comps” share traits like size, condition, layout, and age. By looking at what these properties sold for, you can estimate what yours will be worth once the renovations are done. This method is used by professional investors, property managers, and homeowners who want to maximize their property’s potential.
“Knowing your ARV allows you to choose upgrades that add the most value and avoid unnecessary expenses.”
Who benefits from knowing ARV. It’s valuable for different types of property owners. Flippers use it to decide if a property is worth buying and renovating. Landlords use it to plan improvements that allow them to increase rental income. Homeowners use it to prepare for selling their property at a higher price. In every case, ARV gives a clear target to work toward.
The advantage of starting with ARV. When you know your ARV, you have a plan based on real numbers, not guesswork. You can confidently choose upgrades that add the most value and avoid unnecessary expenses. It’s the first step in any successful renovation or investment strategy.
If you want to know your property’s true potential, I can help you calculate an accurate ARV and create a strategy to increase its value. Call me at 803-727-7256, email pierce@tidepm.com, or visit https://tidepm.com to get started. Remember: the right number can change how you invest, renovate, and profit in real estate.
