Understanding ARV & Comps: Estimating Real Value Like a Pro

Knowing a property’s ARV — After Repair Value — is the foundation of smart investing. It determines what you should pay, what you might make, and whether a deal is even worth pursuing.

🏷️ What Is ARV?

ARV stands for After Repair Value — the estimated market value of a property after it’s been fully renovated.

Example:
If a property is distressed and selling for $60,000, but similar renovated homes nearby are selling for $180,000 — that $180,000 is your ARV.

You don’t just guess ARV. You calculate it based on real data.

📊 What Are Comps?

“Comps” (short for comparable sales) are recently sold properties that are similar to the one you’re evaluating. They help you justify your ARV.

To find good comps, you want:

  • Same neighborhood (within 1 mile ideally)
  • Sold in last 6 months
  • Same style/structure (ranch, 2-story, etc.)
  • Similar square footage (within ±15%)
  • Same bedroom/bathroom count

🔍 Where to Find Comps

The best way to start is by working with an experienced agent who understands local values. 🧠

👉 Find your preferred agent at IllinoisForeclosureList.com — we work with investor-friendly realtors who can pull accurate comps and analyze deals with you.

You can also check:

  • Zillow – Use the “recently sold” filter within 1 mile
  • Redfin & Realtor – Also offer sale history with maps
  • Your local MLS (if you’re an agent or working with one)
  • Use our ARV Estimator Tool to paste in comps and get a smart average

📐 How to Estimate ARV from Comps

Once you’ve found 3–5 strong comps:

  1. Look at price per square foot
  2. Adjust slightly for differences (garage, basement, lot size)
  3. Average them out

Example:

  • Comp 1: 1400 sqft sold for $210K → $150/sqft
  • Comp 2: 1350 sqft sold for $198K → $146/sqft
  • Comp 3: 1450 sqft sold for $220K → $151/sqft

Average: ~$149/sqft × subject property size (1400 sqft) = Estimated ARV: $208,600

❌ Common Mistakes to Avoid

  • Using listed prices instead of sold prices
  • Comparing to homes across major roads or school zones
  • Including foreclosures or investor flips that haven’t been rehabbed
  • Forgetting to adjust for square footage

Always use sold, renovated, and nearby comps.

🛠️ Tools to Help You Estimate ARV

✅ Final Word

The better your ARV estimate, the better your offers, profits, and risk management.

Use good comps, think like an appraiser, and back up every number.

Need help estimating your first ARV?
Let our team review your deal — or use the wizard to run the numbers confidently.

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