determining the A.R.V.

I expect a lot of replies with this one. What is everyone doing to determin thier ARV on a subject property? The highest comp, aprasail with repires added??

Is there a spell checker on this site??


Comps. To sell fast list it under comp price. I don’t think ther iz spellchek on this site.

What is everyone doing to determin thier ARV on a subject property?

I would strongly suggest learning your market. If you’re going to be a serious investor, what could be more important? Get out of the house and look at 100 properties (inside and out)in your target investment area. Learn the market values so that you don’t have to ask someone else for their opinion of ARV. You should be able to look at a property and KNOW the value.

Good Luck,


Knowing market values and rents on residential properties is an extremely basic and easy question. It only takes a short time before you will know your market. Just do what propermanger said and you’ll learn your answer very quickly.


  1. Call a Realtor and tell them what you’re doing.
  2. Schedule a bunch of places, then schedule some more places.
  3. Learn to cash flow a property.
  4. Then bid low on everything. This is a game of quality not quantity. Quality properties with very strong cash flow are the only thing you can buy.
  1. Get a CMA from a realtor.
  2. Get a as is appraisal and CMV from an appraiser.
  3. Get estimates from contractors and back cost of repairs from either CMV or CMA.


Scott Miller

what does back cost mean?

Get several comps then drive them when you go to check out the house. Objectivley compare your house to those and adjust your ARV accordingly.

Sorry for the confusion, I meant to say “back out costs” of repair from your ARV estimate…


Scott Miller

Your ARV should be based on how similar you are going to rehab your property to what has currently sold in the last year, with between 0-120 days on the market.

you should make sure to account for how other homes compare to your. Example… did they use tile, compared to your vinyl, or laminate compared to refinished hard woods… White Walls to Colored… Painted Plaster compared to re-Drywalling, etc…

Comps don’t always simply determine the ARV’s. Compare how they were finished to what you are planning on doing.

But, also keep in mind, that the local comps in the area can change from one street, to the next, or one side of the road to the other. also, you shouldn’t rely on the highest price home in the area as your ARV. Take an average of 5 similar, then compare how similar they really are.


I determine values three ways:

  1. I go to a realtor and I get values of similair properties that have sold within the last 90 days (same number of bedrooms, same number of bathrooms, and roughly the same square footage.), then I take the average of those. That would be what I call the direct comp value.
  2. I get a list of all properties sold in the same zip code in the last 90 days and I figure the average cost in dollars per square foot and I apply that to the after repair square footage of the property. I think of this as my cost per square foot comp value.
  3. I look the rents of properties with the same number of bedrooms and bathrooms and roughly the same square footage, then calculate the average rent value. I then divide the direct comp value by the average rent value. This gives me a gross rent multiplier that I can apply to my own property.
    I know that sounds a little bit complicated, but I want accurate values for my properties. In some instances, I don’t think that tile floors versus linoleum floors make that much of a difference, but in some instances, if it fetches $200 per month more in rent with granite countertops, stainless steel appliances, tile floors, ect. I believe that the value of the property can substantially change.