For fix-and-flip investors, miscalculating the ARV (After-Repair Value) can derail a deal. Common mistakes include:
Using bad comps: Ensure comparables match the property in size, style, and condition, and are from recent sales (3–6 months).
Overestimating renovations: Luxury upgrades won’t always boost resale value. Match renovations to the neighborhood standard.
Ignoring market shifts: ARV should reflect current market conditions, not outdated data.
Relying on automated tools: Use manual comp analysis or local agents instead of AVMs like Zillow.
A precise ARV is crucial to avoid failed flips and protect your investment.