Anchor the finished value to comparable sales. Enter three renovated sold properties, adjust for material differences, and apply their price per square foot to your subject property.
ARV = subject living area × mean of the three adjusted comparable prices per square foot
WORKED EXAMPLE
Sold comps at $285,000 for 1,500 sq ft, $320,000 for 1,600 sq ft, and $297,000 for 1,500 sq ft produce $190, $200, and $198 per sq ft. Their average is $196. Applied to a 1,500 sq ft subject, estimated ARV is $294,000, with a comp-derived range of $285,000 to $300,000.
Select comparables that match the finished home
Use recent closed sales in a location and property type that buyers would reasonably consider substitutes for the subject. Match finished condition, living area, bed and bath count, lot characteristics, and important amenities as closely as possible. Asking prices show competition but do not establish what a buyer paid. This calculator uses three manually entered sold comparables; it does not retrieve or verify sales records. The estimate is only as useful as the evidence behind those inputs.
Make supported adjustments before averaging
A positive dollar adjustment raises an inferior comparable’s sale price toward the subject; a negative adjustment lowers a superior comparable’s price. Use market-supported adjustments rather than automatically treating renovation cost as market value. The tool divides each adjusted price by that comp’s living area, takes an equal-weighted mean, and multiplies it by subject living area. The displayed low and high values use the lowest and highest adjusted comp prices per square foot.
Treat the range as a starting point for review
Price-per-square-foot averaging is a transparent screening method, not a professional appraisal. It can be misleading when homes differ greatly in size, layout, condition, land, or location. A tight range does not prove the comps are appropriate, and a wide range is a reason to examine them more closely. Review the best matched sales individually before taking the estimate into a flip, wholesale, or MAO calculation. An unsupported ARV can make every downstream profit figure look better than it is.
No. After-repair value is an estimate of market value in the finished condition. Spending money on renovations does not guarantee an equal increase in resale value.
Does this calculator pull live comparables?
No. Enter three verified sold comparables yourself. Revamp365.ai’s property lookup and Instant Comp tools can help with the broader property research workflow.
Is the low-to-high range a statistical confidence interval?
No. It reflects the lowest and highest adjusted price per square foot among your three comps, applied to the subject area.
