After-repair value (ARV) is what a property should sell for once your renovation is complete. For a rehab lender, it's the most important number in the deal, because the loan is sized against it.
How ARV sets your loan
If a lender funds up to 75% of ARV and the finished property is worth $300,000, the maximum loan is 75% of that amount. That cap covers the purchase and the repairs together.
| ARV | Max loan at 75% |
|---|---|
| $200,000 | $150,000 |
| $300,000 | $225,000 |
| $400,000 | $300,000 |
Estimating ARV
- Pull recent sales (the last 3–6 months) of similar homes nearby: same size, beds, baths, and age.
- Adjust for differences in condition, lot, garage, and finishes.
- Match your scope of work to the finish level of the best comps, not the average.
Be conservative. A realistic ARV gets approved faster and protects your profit if the market softens.