Property and deal inputs
Example data table
| Comparable | Sale Price | Sq Ft | Months Ago | Distance | Condition Adj. | Location Adj. | Feature Adj. |
|---|---|---|---|---|---|---|---|
| Example 1 | $292,000 | 1,780 | 2 | 0.4 mi | $6,000 | $2,500 | $1,500 |
| Example 2 | $305,000 | 1,900 | 4 | 0.8 mi | -$3,000 | $4,000 | $2,500 |
| Example 3 | $287,500 | 1,725 | 3 | 0.6 mi | $4,500 | $1,500 | $2,000 |
| Example 4 | $310,000 | 1,985 | 5 | 1.1 mi | -$4,500 | $3,500 | $1,000 |
This sample mirrors the default inputs already loaded in the calculator.
Formula used
1) Adjustment total
Adjustment Total = Condition Adjustment + Location Adjustment + Feature Adjustment
2) Adjusted comparable price
Adjusted Price = Comparable Sale Price + Adjustment Total
3) Time-adjusted comparable price
Time Adjusted Price = Adjusted Price × [1 + (Annual Market Trend % × Months Ago ÷ 12)]
4) Adjusted price per square foot
Adjusted $/Sq Ft = Time Adjusted Price ÷ Comparable Sq Ft
5) Comparable weight
Weight = max(0.15, 1 ÷ [1 + Distance + Months Ago ÷ 6])
6) Weighted average adjusted price per square foot
Weighted Avg $/Sq Ft = Σ(Adjusted $/Sq Ft × Weight) ÷ Σ(Weight)
7) Base subject value
Base Subject Value = Weighted Avg $/Sq Ft × Subject Sq Ft
8) After repair value
ARV = Base Subject Value × (1 + Rehab Quality %)
9) Total repair budget
Total Repair Budget = Repair Cost × (1 + Repair Contingency %)
10) Max allowable offer
MAO = (ARV × MAO Rule %) − Total Repair Budget − Holding Cost
How to use this calculator
- Enter the subject property size, purchase price, and budget figures.
- Add at least two comparable sales with price and size.
- Enter months since sale and distance for each comparable.
- Add positive or negative adjustments for condition, location, and features.
- Set market trend, rehab premium, closing cost, target profit, and MAO rule.
- Press Calculate ARV to show the report above the form.
- Review the chart, comparable table, and deal outputs.
- Use the CSV or PDF options to save the report.
Frequently asked questions
1) What does after repair value mean?
After repair value is the expected resale value once renovations are completed. Investors use it to judge deal quality, project profit, and purchase limits before buying a property.
2) Why are comparable adjustments necessary?
Comparable homes rarely match the subject perfectly. Adjustments help normalize differences in condition, location, and features so the pricing comparison becomes more realistic and more defensible.
3) Why does this calculator use weighted comparables?
Closer and newer sales usually deserve more trust. Weighting helps the model favor comparables that better reflect current neighborhood behavior and reduces distortion from weaker sales evidence.
4) What is the rehab quality premium?
It is a percentage uplift applied to the base estimate. Use it when your finished product should outperform average neighborhood finishes because of stronger design, materials, or buyer appeal.
5) What is a max allowable offer?
Max allowable offer is the highest price an investor can usually pay while preserving room for repairs, holding costs, and target profit under a chosen deal rule.
6) Should I include holding and closing costs?
Yes. Deals often look attractive until transaction and carry expenses are added. Including them makes the analysis more practical and closer to the final investment result.
7) Can this replace a formal appraisal?
No. This tool supports screening and underwriting decisions. A licensed appraisal, inspection, and local market expertise are still important before funding or closing a purchase.
8) How many comparables should I enter?
Two are the minimum here, but three or four usually produce a steadier estimate. More high-quality comparables can improve confidence when they are recent and nearby.