Investor Encyclopedia

After-Repair Value

After-Repair Value: a practical Canadian real estate investor guide to underwriting use, deal risk, common traps, and Realist.ca implementation.

Definition

After-Repair Value is a real estate term investors use to assess valuation discipline, comparable evidence, lender/appraiser confidence, and whether assumptions survive market reality.

Formula

ARV = supportable stabilized resale value after planned repairs, based on adjusted comparable sales.

Example

An investor reviewing a Canadian property tags after-repair value as a diligence item, links it to source documents, and reruns the model if the answer changes purchase price, closing certainty, rent, financing, capex, or exit value.

Why It Matters

After-Repair Value matters because it changes valuation discipline, comparable evidence, lender/appraiser confidence, and whether assumptions survive market reality. The mistake is treating it as paperwork when it is really a deal constraint.

Investor Interpretation

Use after-repair value as a decision filter: if it cannot be verified, priced, insured, financed, or managed, the right move is a lower offer, stronger condition, larger reserve, or a walk-away.

Realist Tie-In

Realist.ca can make After-Repair Value searchable, connect it to related guides, attach it to saved deal analyses, and surface the right checklist/calculator beside listings, underwriting pages, and investor lead magnets.