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What Is After Repair Value (ARV) and Why Lenders Care
By Investor Capital, LLC | Published November 9, 2026 | 1 min read | Deal Analysis
Short answer: after repair value, or ARV, is what a property is expected to be worth once the renovation is complete. Lenders use it with your purchase price and rehab budget to decide how much they can lend.
How ARV is estimated
The best method is comparable sales: recently sold homes nearby with similar size, age, condition and features to what your finished property will have. Look at sales from the last few months and stay close to the property.
How lenders use it
Many investor programs size a loan against both total project cost and ARV. Our programs go up to 85% of purchase and rehab costs in many cases, and the final amount also depends on ARV, the deal and your experience.
Common mistakes
- Using list prices instead of sold prices
- Comparing to homes that are much larger, newer or in a different neighborhood
- Planning upgrades that the neighborhood will not pay for
Why it matters to you
An overstated ARV can leave you short on funds or with no profit at sale. A careful estimate protects your margin.
Want a second set of eyes on your numbers? Send your deal or learn about our bridge and fix and flip programs.
Frequently asked questions
What does ARV mean?
ARV stands for after repair value, the expected value of a property once the renovation is complete.
How do I estimate ARV?
Use recent sold comparable homes nearby with similar size, age, condition and features.
How do lenders use ARV?
Lenders size a loan against project cost and ARV. Programs go up to 85% of purchase and rehab costs in many cases, and the final amount also depends on ARV.
Related loan program
Purchase and rehab funding with a draw schedule built for active flippers.
Fix and Flip LoansKeep reading
- Hard Money vs Bank Loan: Which Is Right for Your Deal?
- How Rehab Draws Work on a Fix and Flip Loan
- Investor guides
- All blog posts
General information for business and investment purpose lending. Not legal, tax or financial advice. Loans subject to underwriting and approval. See our licensing information.