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ARV Calculator

Welcome to your free online ARV calculator.

If you don’t have comps, you can…

Generate 3-5 comparable properties for free from EmpireBIGData.com to enter into the calculator below.

The calculator will not accept comps more than 6 months old or more than 1 mile radius from your subject property.

ENTER YOUR COMPS DATA BELOW…


What is the ARV Calculator?

ARV calculator is used to calculate the ARV of a piece of real estate property.

ARV stands for After Repair Value of real estate properties.

It’s essentially the fair market value of the property after it has been repaired or improved by an investor, the buyer.

There are other calculators that can also be used to determine how much money you should put down on your loan when purchasing a home.

How Does it Work?

An ARV calculator can help you make an informed decision about buying your next real estate rehab project whether it’s your first time or not.

Let’s talk more about the after repair value; here are some of the highlights…

  1. How ARV is Used Real Estate InvestingHow ARV is Used Real Estate WholesalingWith Estimated Repair Costs, The ARV Creates A Maximum Allowable OfferJust Like Repair Value Added, After Repair Value is SubjectiveTraditionally, A Relationship With A Real Estate Agent Was The Only Way To Get Comps & Calculate After Repair ValueHow To Use The Calculator For Your Real Estate InvestmentsWhat Are The Benefits Of Using An ARV Calculator?

Let’s dive right in…

How ARV is Used Real Estate Investing

Real estate investing can be a great way to make money and build wealth.

However, it’s important to understand the basics before getting started.It’s important to discuss the after repair value (ARV) of an investment property, and how to calculate it.The after repair value is the estimated market value of a property after it has been repaired or renovated. It’s important to know the after repair value of an investment property before investing in it, as this will help you determine whether or not the investment is worth your time and money.To calculate the after repair value (ARV) of an investment property, you’ll need access to comparable sales in the area within the last 1 year and 1 mile radius of the investment property.

What Is A Comparable in Real Estate?

In real estate, a comparable is a similar property that has been sold recently, in order to help estimate the value of a property.

And in this case of real estate investing, we call it the after repair value indicating the fact that it is likely that candidate investment property will need work.Comparable properties are used to give an idea of what the investment property may be worth, after taking into account any recent renovations or upgrades. Again, the comparable properties for a typical market has to be within from a maximum of 1 year sales record and no further than 1 mile away from the subject property.For the rest of this article, we will use refer to as comparable properties as real estate comps; comps for short. Comps can also be used to determine whether an investment property is being priced fairly or not. Property value is generally a professionally weight average of the real estate pricing within close proximity from the subject property.

How ARV is Used Real Estate Wholesaling

Real estate wholesaling is the process of finding a bargain property and selling it or assigning the right to purchase it to another investor, often before the property has been renovated.

The goal is to find a quality property at a discount price with respect to the property value and quickly resell it for a profit. This business model can be extremely profitable, but it can also be quite risky.The first step in real estate wholesaling is finding a bargain property. This can be done by looking for pre-foreclosures, and motivated sellers.That first step of real estate wholesaling as outlined above can be further broken down into further steps as follows:

  1. Data Access and Contact Initiation

Once you have found a property that meets your criteria, you will need to do your due diligence to make sure that it is a good investment.In the world of real estate, the after repair value, or ARV, of a property is extremely important as explained earlier when it comes to real estate investing.

The Primary Purpose of Wholesaling is to Find Properties for Real Estate Investors.

So the ARV is the estimated property value after any necessary repairs have been made.

It’s what determines whether or not a property is a good investment for the potential end buyers/real estate investors and how much profit a wholesaler can hope to make.Per the investor level, the real estate comps and ARV is reviewed with a number of factors, including the age and condition of the property, the current market conditions, and the cost of repairs. But a wholesaler would only need to be able to estimate repair costs with a reliable system at a more surface level.Typically, evaluating a property repair costs can be done with low/medium/high level scale is enough to quickly assess the viability of a property for investment.So it’s important to have a realistic estimate of the ARV in order to make sound investment decisions.Investors use the ARV to determine whether or not a property is worth buying. So wholesalers use same method to evaluate properties ahead of investors’ more in-depth evaluation

With Estimated Repair Costs, The ARV Creates A Maximum Allowable Offer

When it comes to real estate investing, one of the most important concepts that you need to understand is the concept of the “maximum allowable offer” (MAO).

This is the maximum amount that you’re willing to pay for a property, regardless of what the current market value happens to be. There are a few reasons why you would want to know your MAO.First, if you’re ever in a situation where you’re competing with other investors for a property, you’ll want to make sure that you don’t go over your MAO. This will help ensure that you don’t end up overpaying for a property. Second, by knowing the MAO, you’ll be able to make more informed decisions about which properties you want to pursue. For example, if you’re bidding on a property that is listed at market value, but your MAO is considerably lower than the asking price, you won’t want to pursue it. By avoiding properties that are listed above market value, you’ll be able to avoid wasting time and money on bids for properties.This calculator is a great tool to help you determine the maximum allowable offer for a property from real estate comps. It also takes into account the estimated repair costs, so you can be sure that you’re not overpaying for a home because they are typically in conditions that needs repair.

Just Like Repair Value Added, After Repair Value is Subjective

Value-added is a term used in business to describe the amount of increase in the worth of a product or service.

It is usually calculated by subtracting the cost of materials and labor from the selling price. The difference is the amount of value added by the company.

Why is it Necessary To Calculate Repair Value Added?

When it comes to real estate, the term “repair value added” is used to describe the amount of increase in the worth of a property that is a result of repairs and renovations made by the current owner.

This figure is usually calculated by subtracting the cost of materials and labor from the estimated market value of the property. The difference is the amount of value added by the current owner. Repair value added can be a valuable tool for assessing how much a property has increased in value as a result of repairs, and can be helpful in negotiating sale prices.

Whether or not a particular repair or renovation adds value to a property is often a matter of personal opinion; professional opinion nonetheless.

Some people may see a new roof as an essential improvement that increases the value of a property, while others may see repair costs as a superfluous expense that doesn’t add much value.

The same can be said for renovations like remodeling kitchens or bathrooms, adding new flooring, or painting the walls. Some people will see these as valuable improvements that add to the overall appeal of the property, while others may not think they are worth the expense.It is important to remember that after repair value is subjective, and it is always wise to get multiple opinions before making any renovations or repairs.

Traditionally, A Relationship With A Real Estate Agent Was The Only Way To Get Comps & Calculate ARVs

Getting an accurate estimation of a property’s worth (or “ARV”) is essential for making smart investment decisions.

In the past, the only way to get this information was by working with a real estate agent. However, thanks to technology, there are now a number of ways to calculate ARVs on your own. In this article, we’ll explore three of the most popular methods.

#1. The first method is using a property valuation tool like Zillow or Redfin.

These tools use public data to give you a rough estimate of a property’s value.

While they’re not 100% accurate, they can be a good starting point for determining your ARV.

#2. The second method is performing your own CMA (or Comparative Market Analysis).

This method is ideal if you’re looking to buy a property in the near future, as it provides you with an accurate idea of what properties are selling for.

To do this, you need to pull comps from the MLS (requiring the help of a real estate agent) and other sources.

#3. The final method is to hire a professional real estate appraiser, who will usually charge anywhere from $500-2,000.

While this method may seem like the most expensive out of all three options, it’s also the only one guaranteed to provide you with 100% accurate information.

Even if you go with option #1 or option #2, it can never hurt to order an appraisal once you have a good idea of the ARV.As an alternative, real estate agent can also send you individual real estate comps.

How To Pull Comps That You Will Use With The Calculator For Your Real Estate Investments

STEP 1 – Login to Propstream. If you don’t have an account, sign up for a free trial at www.EmpireBIGData.com

How To Pull Comps That You Will Use With The Calculator For Your Real Estate Investments

Step 2 – Once you are logged in, you will see the main dashboard.

Step 3 – Enter the subject property address into the address bar at the top of the dashboard.

Step 4 – As you click on the auto-suggested address showing as you type the property address, the property information page will pop up.

Step 5 – Click on the DETAIL button to show the different tabs available to reveal more information about the property.

Step 6 – Click on the tab COMPARABLES & NEARBY LISTINGS to reveal all the properties that sold in recent times.

Step 7 – Scroll down below the fold to reveal the list of all the comps available in a table.

Step 8 – Use the filter form on the left to narrow the comps search down to only properties within 1 mile radius and sold in the last 6 months.

Step 9 – Click the ACTION button and click the VIEW COMP REPORT option to down a full PDF comp report into your device.

Step 10 – Scroll right all the way to the DISTANCE column and click the column header to sort to the closest comp to the subject property.

These are comps that you can use with the calculator at the top of this page.

You can select as few and as more as you want to show up in your report.

Page 1 of a Sample Comp Report

Page 2 of a Sample Comp Report

Page 3 of a Sample Comp Report

Page 4 of a Sample Comp Report

Page 5 of a Sample Comp Report

Can you Survive Real Estate Investing & Wholesaling Without This FREE & Online ARV Calculator?

When I first started my real estate business, I wasn’t exposed to the idea of using ARV to set a profit goal.

I almost started the application for a loan to acquire a Belleville NJ property but thank goodness.

Why?

Because getting into a business venture without setting goals that can be tracked and measured is a terrible idea.

That’s what the ARV formula represents in real estate investing.

Literally… it removes the blindfold and allows you to approach the real estate business with the knowledge of predictive success.

With the ARV, you can come up with a maximum allowable offer first and then everything else follows after with profits.

Thanks to a few earlier mentors… I was able to learn the ARV formula quickly and soon enough.

These video series break down my mindset on ARV…

Back then, I created my personal ARV calculator spreadsheet on excel.

There was no Biggerpockets or myEmpirePRO to make these tools available on the go.

But these days, all you need is to bookmark this page into a smart device web browser and effectively have access to a ARV calculator app on the go.

So the maximum allowable offer (MAO) that you calculate from the ARV is still an estimate driven by educated opinion but so is a certified appraisal from a licensed appraisal.

The certification only represents insurance and government regulation for consumers but not necessary value for investors.

A real estate investor or a wholesale professional is a producer and is responsible for the evaluation and valuation of any property of interest.

In Conclusion, What Are The Benefits Of Using An ARV Calculator?

When you are buying or selling a home, it is important to understand what the property is worth.

This is where a calculator comes in handy.

A calculator will help you estimate the value of a property after repairs have been made.

This can be helpful when you are trying to figure out how much you should offer for a home or how much you can sell a home for.

A calculator takes into account a number of different factors, including the age and condition of the property, the location, and the current market conditions.

It will also take into account any repairs that need to be made.

This can be helpful when you are trying to decide if a property is worth your time and money.

How do you calculate an ARV?

ARV stands for After Repair Value and it is calculated by averaging comparable good and fair market condition property sale prices within close proximity of your subject property without adjusting for the condition of your subject property.

What is the 70% rule in real estate?

After calculating the after repair value (ARV) of a property, some real estate investors adjust for target profit by multiplying the number by 70%.

That’s the 70% rule but other real estate prefer the 65% while some highly competitive market do use as high as 84% rule.

Which ARV calculator is best?

Biased may be… but when we designed this ARV calculator, it was designed to keep it super simple and also to give you access to the most important resources to find even more deals. Finding more deals comes down to your marketing skill set in a digital age.

Are ARV calculator accurate?

All ARV calculators are as accurate as your knowledge and familiarity with the real estate market.

There are nuances that only experience can and will bring but learning how to use an ARV calculator to calculate the after repair value is still the closest empirical way to measure investor success.

How do you calculate 70 rule in real estate?

You can calculate 70 rule in real estate by multiplying the average recent sales of comparable properties within close proximity by 70%.

It’s a method used by real estate investors to structure in their profit goals in the deal.

What does 70 of ARV mean?

70 of ARV stands for 70% of the after repair value (ARV) of a real estate property to determine the maximum cost of acquisition.


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