There is a BIG difference between ARV and flip sale price. It's critical to know if you're in EITHER flipping or BRRRR investing. Relying only on one of these values for both your flips and BRRRRs could put you in a rough spot (especially in today's market). When the market is growing like crazy and home prices are ever-increasing, knowing the difference between these two can be overlooked without feeling the pain.
But with prices flat over the past couple of months (and even decreasing in larger metro markets that traditionally yield higher flip returns), mistaking these numbers as the same could have you losing tens of thousands of dollars. . So what's the difference between ARV and sale price?
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