How ARV is estimated
ARV = Average comp price per sq ft × Subject square feet
Find three or more renovated homes that sold recently near the property, ideally within half a mile and six months, with similar bedrooms, bathrooms and size. Their price per square foot gives you a value range.
Example
Three renovated comps sold at $191, $196 and $187 per square foot. The average is about $191, so a 1,600 sq ft subject house has an estimated ARV of roughly $306,000, with a range of about $298,000 to $314,000.
Adjust for differences
Price per square foot is a starting point. A garage, extra bathroom, larger lot or busy street can each move value. When in doubt, use the low end of the range.
Common questions
Where can I find comps?
A local agent can pull sold data from the MLS. Public sites show recent sales too, but check that the comps were actually renovated.