Real Estate Investment Shorts
Real Estate Investing Terms: ARV
Download the 22 words you need to know for real estate investing
What you need to know about ARV
Today’s real estate investing term is ARV.
ARV is the ‘after repair value’. It’s how much you’re estimating that property will sell for once you fix it up and did everything to bring it up the level of the community.
Many fix and flippers use that word and base their info on comps. They look at ARV to determin if the property is a good deal or not. It’s based on the values of the area, and how well you’re updating the property to the standards of that specific community.
PRO TIP: Visit some open houses or houses for sale in the area to get a feel for the updates your house may need. You don’t want to over build your property to increase the ARV.
There is a set ‘expectation’ in each community. Sure, you can put a pool in or marble counter tops, but if there are not other houses comparable (comps), your value may not increase like you think it might.
Make sure you go to DFWTOP.com/words if you want to download 22 Real Estate Investing Terms you need to know. It’ll help you as a new real estate investor sound like a pro.
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