ARV
Business & Finance abbreviation · Real Estate & Mortgage
| Stands for | After-repair value |
|---|---|
| Categories | Business & Finance |
ARV stands for After-repair value, a real estate & mortgage abbreviation.
Estimated market value of a property after planned renovations are completed, based on comparable renovated homes. House flippers and hard money lenders use it to set purchase offers and loan amounts.
Example: The ARV is $350,000, so by the 70% rule we shouldn't pay more than $195,000 with $50,000 of repairs.
Usage notes
The flippers' "70% rule" holds that a buyer should pay no more than 70% of ARV minus repair costs. Many hard money lenders size loans as a percentage of ARV.
Related abbreviations
More real estate & mortgage abbreviations
- ABR – Accredited Buyer's Representative
- ADU – Accessory dwelling unit
- ALTA – American Land Title Association
- ARM – Adjustable-rate mortgage
- AVM – Automated valuation model
- BA – Bathroom
- BPO – Broker price opinion
- BR – Bedroom
- BRRRR – Buy, rehab, rent, refinance, repeat
- bsmt – Basement
- CAC – Central air conditioning
- CAM – Common area maintenance