How to Find the After Repair Value (ARV) of a Property in 4 Easy Steps

1. Look at the Tax Assessed Value

The tax-assessed value can be a useful starting point. It’s a government estimate of the property’s value, based on its current condition, location, and size. While this number doesn’t reflect the future market value, it gives you a baseline for what the property is worth today.

• Check your local county's website for tax records, which are usually public.
• Keep in mind that tax-assessed values are often lower than market values, but it’s helpful as a benchmark when calculating the ARV.

2. Find Comparable Properties (Comps)

Next, you’ll want to look at comparable properties—or “comps.” These are homes that have recently sold and are similar to the property you're analyzing in terms of square footage, bed/bath count, and neighborhood. The ideal comps meet these criteria:

• Same Neighborhood or Street: Focus on properties on the same street or at least in the same neighborhood. The closer, the better, as location impacts value significantly.
• Size & Layout: Look for comps with similar square footage, number of bedrooms and bathrooms, and lot size.
• Updated Condition: The properties you use as comps should be more updated than the one you're analyzing since you plan to do renovations. You’re aiming to match (or exceed) the condition of these homes after your repairs.
• Sold in the Last Year: Ideally, the comps should have sold within the last 6-12 months to reflect the most current market conditions.

Online platforms like Zillow, Redfin, or Realtor.com allow you to filter properties based on these criteria. Analyze 3-5 comps to get a good idea of the market value.

3. Check the Zestimate

The Zestimate from Zillow is an automated estimate of a property’s market value. While it’s not always 100% accurate (since it’s based on algorithms and public data), it gives you a quick, rough estimate of what the property could be worth post-renovation. Take this figure with a grain of salt, as it doesn’t factor in specific property upgrades or unique characteristics. However, combined with other metrics, it can be a helpful tool.

4. Take the Average

Once you’ve gathered the tax-assessed value, comp sales, and Zestimate, take the average of all these figures. This will give you a rough estimate of your ARV. Here’s how to do it:

• Add the tax-assessed value, average price of your comps, and the Zestimate.
• Divide the total by 3.

This method won’t provide a fully comprehensive or highly detailed ARV calculation (as you would get from a professional appraisal), but it’s an efficient way to estimate the value quickly & conservatively when analyzing potential deals.

Understanding ARV is critical to making sound investment decisions. With a solid estimate, you can move forward with greater confidence, whether you're renovating a rental property or planning a flip. While the above method provides a quick snapshot, always double-check your numbers with a more in-depth analysis or seek a professional appraisal when necessary.