After renovation value (ARV) is the estimated price after renovation. You can determine it by adding your home’s current value and the value of your planned renovation. The existing condition of your house and market conditions can influence your property’s ARV.
One of the area’s leading home remodeling contractors tells you more about ARV and why it matters.
How Do You Know Your Property’s ARV?
Determine the Comparables
Comparables or comps are properties similar to yours in your neighborhood that were sold recently. You can find them on a multiple listing service (MLS). Comps almost resemble your home’s size, style, age and condition. Checking the prices of at least three comparable properties will give you an idea about your home’s ARV.
Have Your Property and Renovations Appraised
Hiring experts to appraise your property will help you calculate a more accurate ARV. Experienced appraisers will evaluate every part of your home, including its size in square feet, overall condition, location, curb appeal and number of bedrooms and bathrooms. After their assessment, they will give you an estimate of your house’s current market value.
Also, consider having your property appraised after your bathroom or kitchen remodeling project. The housing market tends to fluctuate, so an appraisal following renovation will allow you to calculate a more precise ARV.
Why Does ARV Matter?
Your property’s ARV can affect your borrowing power if you apply for a loan. If you’re spending a significant amount on your renovation, you want to ensure a good return on your investment. ARV can help you determine if the upgrades you’re considering are worth your hard-earned money.
Planning a major or large-scale remodeling project? Let Design Build Remodeling Group of Maryland bring your vision to life. We are among the area’s most trusted new addition contractors. Call us at (443) 300-2268 or complete our online form to schedule a consultation. We work with clients in Baltimore, MD, and nearby areas.
