Understanding the Basics of ARV in Real Estate Investing

The secret to achieving success in the real estate market is to always make your investments worthwhile. If this is not done, then the profits tend to become elusive. To avoid such a predicament, the best thing to do is to get back to the basics. The stronger your basics are, the better you will perform on the market. Understanding general terminology will make your foray into the world of real estate investing much simpler.

One of the most important terminologies used in the market is ARV. For those who have not heard this before, it stands for After Repaired Value. This term refers to the value of a home, after certain improvements have been done to it. Whenever you start repairing a home with the intention to sell it, make sure that the amount you spend on repairs and improvements is made up in the sale value of the home, otherwise the profit you earn will take a tumble or you may even end up going into a loss.

The basic formula is if you put in 100 dollars of repairs, then the price of the home should go up by 200 dollars. So, the repairs you carry out should be the ones that will get you the necessary improvements. Such as, doors in many properties are not looked after very often. Replacing them is necessary and can run up a huge cost. Ensure that the cost is made up in the overall price of the home.

In addition to these repairs, there are some repairs that will not break even on the cost of the home as well. For example, repairing the driveway will not give you enough returns, but if it is badly required then it should be done.

It is important to focus on both those aspects that will improve the value of the house but also on those that improve the look of the home. The rule is to spend a bigger part of the expense on the former and lesser on the latter. This will help you maintain a good balance while making up the cost.

Kitchens and bathrooms are two of the main things that you need to concentrate on the most. These are the most checked areas by families. Nobody would like to enter a dirty bathroom with faulty plumbing. Make sure everything is working perfectly and you will have a better chance of making a good sale. Kitchens are also favored by people with children, as all the cooking needs to be done there. No matter who the client is, if your bathrooms and kitchen is well maintained, then you are on your way towards making a better sale.


Harji Realtors is one of the leading real estate agents in the region of Chandigarh, Mohali and Kharar. For more information on great deals in Sunny Enclave and the best Sunny Enclave Plots check out our website

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