Calculated ARV Estimate

Definition:

Calculated ARV estimate, also known as after repair value estimate, is the estimated value of a property after it has been repaired or renovated. It is calculated by subtracting the estimated cost of repairs or renovations from the market value of the property in its current condition. 

Formula:

Calculated ARV Estimate = Market Value - Estimated Cost of Repairs

Example: 

Here are some of the factors that can affect calculated ARV estimate: