1. What is After-Repair Value (ARV)?
ARV is what your home would sell for on the open market after it's been renovated to current Miami buyer expectations — updated kitchen, refreshed bathrooms, fresh paint, functional roof and systems.
We estimate ARV using comparable sales ("comps") from the Miami-Dade MLS over the last 90 days: 3 to 5 homes of similar size, bed/bath count, and age, within a 0.5-mile radius of your property. We weight heavier for same-subdivision sales and same-school-zone comps.
We do not use Zestimates or county-assessed values — those lag the market by 6–12 months and miss neighborhood micro-trends (ongoing flood zone changes, condo assessment impact, recent development).
2. How we estimate repairs
For a typical Miami home, repairs run 15–20% of ARV. The exact number depends on what we find during our walkthrough and what licensed contractors we work with confirm on quote.
Categories we assess:
- Roof — age and condition matter most in hurricane zones; replacement runs $12K–$25K in Miami-Dade
- AC system — full replacement $5K–$9K; ducts another $2K–$4K
- Plumbing & electrical — permit-driven, easy to underestimate
- Foundation / slab issues — common in older Miami homes near water table
- Cosmetic — paint, flooring, kitchen, baths — usually the biggest line item
Our estimate is based on a visual inspection plus quotes from licensed Miami contractors we've worked with for years. We'd rather slightly over-estimate than get stuck with surprise costs after closing.
3. What are holding costs?
Holding costs are what we pay to own the property during renovation and resale — usually 90 to 120 days, sometimes longer.
They add up to roughly 2–3% of ARV, broken down as:
- Property taxes — Miami-Dade effective rate ~1.05% annually, prorated
- Insurance — vacant home insurance in Florida is 2–4× normal homeowner rates
- Utilities — power for tools, water for cleanup, minimum service fees
- HOA or condo fees — if your property has them, they keep running
- Financing cost — if we borrow part of the purchase price
This isn't profit — it's the real cost of keeping the lights on while we turn the property around.
4. Why we keep a margin
This is the part most cash buyers won't talk about. Our margin runs 10–12% of ARV, and it covers three things:
- Our team's salaries — 4 full-time people (see Meet the team)
- Risk buffer — market shifts, hidden damage found during demo, permit delays
- Closing costs on resale — title, commission to the listing agent we eventually use, transfer taxes
Without a margin we couldn't offer the $1,000 on-time guarantee, we couldn't eat the cost when a buyer backs out, and we wouldn't be in business in six months. You want your cash buyer to have margin — a buyer with zero cushion is one surprise away from missing your closing.
What we don't do: pad the margin to "see what sticks" or lowball with a bait-and-switch renegotiation later. The number we give you upfront is the number you get at closing.