How to read this result
In the default example, estimated arv is $390,001.00. Results describe this input scenario; they are not a recommendation.
Change one assumption at a time to see how it affects the scenario. Compare periods and cost definitions consistently. Negative results show a modeled shortfall; an unavailable ratio needs a valid denominator.
Formula and methodology
Use comparable sale values already adjusted to reflect the renovated subject. Multiply each adjusted value by its weight and divide by total weight. Weights are normalized; the displayed range is the minimum and maximum entered adjusted sale value.
Enter percentages as whole numbers: 5 means 5%. When used as a factor, the calculation divides a percentage by 100. Percentage outputs multiply the final ratio by 100. Calculations retain precision internally; displayed amounts and rates are rounded to two decimals.
Variables and input definitions
- Adjusted comparable 1 (USD)
- Comparable sale price after user-entered adjustments. Minimum: 0.
- Adjusted comparable 2 (USD)
- Comparable sale price after user-entered adjustments. Minimum: 0.
- Adjusted comparable 3 (USD)
- Comparable sale price after user-entered adjustments. Minimum: 0.
- Comp 1 weight (%)
- Optional weighting. Minimum: 0. Maximum: 100.
- Comp 2 weight (%)
- Optional weighting. Minimum: 0. Maximum: 100.
- Comp 3 weight (%)
- Optional weighting. Minimum: 0. Maximum: 100.
Worked example
This example uses the exact prefilled inputs above. Reset defaults to restore this scenario after making changes.
| Item | Default scenario |
|---|---|
| Adjusted comparable 1 | $380,000.00 |
| Adjusted comparable 2 | $390,000.00 |
| Adjusted comparable 3 | $400,000.00 |
| Comp 1 weight | 33.33% |
| Comp 2 weight | 33.33% |
| Comp 3 weight | 33.34% |
| Item | Default scenario |
|---|---|
| Estimated ARV | $390,001.00 |
| Comparable range | $380,000.00 – $400,000.00 |
Assumptions and limitations
User-entered comparable analysis only. Not an appraisal and no MLS data is accessed.
Results describe this input scenario; they are not a recommendation.
The tool uses values you supply. It does not retrieve market prices, verify leases or inspect a property. Results exclude items outside the listed inputs. Review local requirements and the relevant contract when a payment, fee or allocation depends on them.
Common mistakes
The supplied default weights are 33.33, 33.33 and 33.34. They produce $390,001; rounding them to equal thirds would silently change the inputs.
Sources and method references
These references provide context for the method and terminology. They do not endorse this tool or validate your property assumptions.
- IRS — Instructions for Form 709 (2025) — real property valuationComparable-sales concept and adjusting for differences in date, size, condition and location.
- IRS — Publication 551 (12/2025), Basis of AssetsFair-market-value concept and use of similar-property sales as evidence.
Frequently asked questions
Does ARV include renovation cost?
No. ARV estimates the value after the assumed renovation. Renovation spending is separate and belongs in a flip, BRRRR or offer model.
Can comparable weights total something other than 100?
Yes. The model divides by their sum. At least one weight must be positive.