How to Use an ARV Appraisal to Underwrite Your Next Fix & Flip

You found a property. The numbers look good on paper. The seller is motivated. But before you sign the purchase agreement, you need to answer one question: What will this property be worth after the rehab?

That's the ARV — the As-Repaired Value — and it's the single most important number in any fix and flip deal. Get it wrong, and your profit margin disappears. Get it right, and you close with confidence.

What Is an ARV Appraisal?

An ARV appraisal is a licensed appraiser's opinion of what a property will be worth after planned renovations are completed. The appraiser selects comparable sales of already-renovated properties in the area and develops a value opinion based on what the subject property will look like post-rehab.

It's different from a standard desktop appraisal (which values the property as-is) because it accounts for the planned scope of work — new kitchen, updated bathrooms, flooring, systems, etc.

Why Not Just Use Zillow or Your Own Comps?

You can — and most investors do their own rough comp analysis before making offers. But there are three situations where a licensed ARV report pays for itself:

• Your hard money lender requires it. Many private lenders and hard money shops want a licensed appraisal — not a Zillow screenshot — before they'll fund the loan. An ARV report satisfies that requirement immediately.
• You're in an unfamiliar market. If you're investing in a ZIP code you don't know deeply, your "gut feel" on ARV could be off by $30–50K. A licensed appraiser with local market knowledge will pull comps you won't find on Zillow.
• The deal is borderline. When your profit margin is tight, you need confidence in the number — not a ballpark. A $150 ARV report can prevent a $30,000 mistake.

How to Use an ARV Report in Your Underwriting

Here's the standard fix and flip formula:

That MAO (Maximum Allowable Offer) is only as reliable as your ARV number. If you overestimate ARV by $30K, your actual profit drops by $30K. That's why smart investors treat the ARV as the foundation of every deal, not an afterthought.

What Information Does the Appraiser Need?

When you order an ARV report, provide:

• The property address
• Your planned scope of work (what renovations you intend to do)
• Target finish level (standard builder grade, mid-range, high-end)
• Any structural changes (adding square footage, ADU, garage conversion)

The more detail you provide about the planned rehab, the more accurate the ARV opinion will be. Even a bullet-point list of planned upgrades helps significantly.

Desktop ARV vs. Full Interior ARV

A desktop ARV ($150) uses MLS data, public records, and comparable sales of renovated properties to estimate after-repair value. It doesn't require the appraiser to visit the property.

A full interior ARV ($300+) includes a physical inspection and is the most defensible version. Your lender may require this for larger loan amounts.

For most deal analysis and hard money pre-approval, a desktop ARV is sufficient. Upgrade to full interior only if your lender specifically requires it or the property has unusual characteristics.

The Cost of Not Getting an ARV

A desktop ARV report costs $150. A bad deal costs $30,000–$100,000+. Running the numbers on a $150 appraisal versus the risk of overpaying on a flip isn't even a real decision — it's insurance.

The most successful investors we work with order an ARV on every deal they're seriously considering. It's part of their process, not an exception.

Next Day Desktop Valuations delivers licensed ARV reports for Maricopa County investors at $150. Include your rehab scope and we'll select comps from renovated properties matching your target finish level. 24-hour turnaround. Order your ARV report →