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When you [shop for insurance](https://www.offermarket.us/insurance?ref=content-am-best-ratings), whether it's **Landlord Insurance** or **Fix and Flip Insurance**, it's important to choose an insurer that is financially strong and able to meet its obligations detailed in your insurance policy.

Many private lenders, including [OfferMarket Capital](https://www.offermarket.us/loans?ref=content-am-best-ratings), have a minimum AM Best rating requirement for [DSCR Loans](https://www.offermarket.us/blog/dscr-loan-program) and [Fix & Flip Loans](https://www.offermarket.us/blog/fix-and-flip-loans). 

At OfferMarket, we require all policies be written through insurers with a minimum of A- / VIII. As you will see from the ratings tables below, that means the insurer must be considered to have an "Excellent" ability to meet their ongoing insurance obligations, and their policyholder surplus must be at least $100 million.

## What is AM Best?

AM Best is a financial services rating agency that specializes in assessing the financial strength and size of insurance companies.

## Financial Strength Rating (FSR) Scale

The Financial Strength Rating is a statistical assessment of an insurer's ability to meet their ongoing insurance obligations. AM Best assigns a financial strength rating from A++ (Superior) through D (Poor). Our private lending division, OfferMarket Capital, requires a minimum FSR of A- (Excellent).

<div style="display: grid; grid-template-columns: repeat(1, minmax(0, 1fr)); overflow: auto; white-space: nowrap;">
<table>
<thead>
  <tr>
    <th>Rating<br>Categories</th>
    <th>Rating<br>Symbols</th>
    <th>Rating<br>Notches*</th>
  </tr>
</thead>
<tbody>
  <tr>
    <td>Superior</td>
    <td>A+</td>
    <td>A++</td>
  </tr>
  <tr>
    <td>Excellent</td>
    <td>A</td>
    <td>A-</td>
  </tr>
  <tr>
    <td>Good</td>
    <td>B+</td>
    <td>B++</td>
  </tr>
  <tr>
    <td>Fair</td>
    <td>B</td>
    <td>B-</td>
  </tr>
  <tr>
    <td>Marginal</td>
    <td>C+</td>
    <td>C++</td>
  </tr>
  <tr>
    <td>Weak</td>
    <td>C</td>
    <td>C-</td>
  </tr>
  <tr>
    <td>Poor</td>
    <td>D</td>
    <td>-</td>
  </tr>
</tbody>
</table>
</div>

<br>

## Financial Size Category (FSC)

The Financial Size Category is a measure of **Policyholder Surplus** which is calculated by subtracting the insurance company's liabilities from its assets. The greater the policyholder surplus, the better able the insurance company can withstand adverse economic conditions and remain solvent.

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<table>
<thead>
  <tr>
    <th>Class</th>
    <th>Policyholder Surplus ($ Millions)</th>
  </tr>
</thead>
<tbody>
  <tr>
    <td>I</td>
    <td>Less than 1</td>
  </tr>
  <tr>
    <td>II</td>
    <td>1 to 2</td>
  </tr>
  <tr>
    <td>III</td>
    <td>2 to 5</td>
  </tr>
  <tr>
    <td>IV</td>
    <td>5 to 10</td>
  </tr>
  <tr>
    <td>V</td>
    <td>10 to 25</td>
  </tr>
  <tr>
    <td>VI</td>
    <td>25 to 50</td>
  </tr>
  <tr>
    <td>VII</td>
    <td>50 to 100</td>
  </tr>
  <tr>
    <td>VIII</td>
    <td>100 to 250</td>
  </tr>
  <tr>
    <td>IX</td>
    <td>250 to 500</td>
  </tr>
  <tr>
    <td>X</td>
    <td>500 to 750</td>
  </tr>
  <tr>
    <td>XI</td>
    <td>750 to 1,000</td>
  </tr>
  <tr>
    <td>XII</td>
    <td>1,000 to 1,250</td>
  </tr>
  <tr>
    <td>XIII</td>
    <td>1,250 to 1,500</td>
  </tr>
  <tr>
    <td>XIV</td>
    <td>1,500 to 2,000</td>
  </tr>
  <tr>
    <td>XV</td>
    <td>2,000 or greater</td>
  </tr>
</tbody>
</table>
</div>

### How to calculate Policyholder Surplus

Assets - Liabilities = Policyholder Surplus

### What is Policyholder Surplus

Policy holder surplus is the liquidation value of an insurance company. If you were to sell all assets and repay all liabilities, the policyholder surplus is what would be left. In business, this is is otherwise known as **book value**.

---

[![Shop 40+ carriers landlord insurance.jpg](https://cms.offermarket.us/uploads/Shop_40_carriers_landlord_insurance_974b0d370b.jpg)](https://www.offermarket.us/insurance?ref=content-am-best-ratings)

---

## Protect and grow your portfolio with OfferMarket

OfferMarket is a real estate investing platform focused on serving rental property investors, specifically 1-4 unit residential properties. Our mission is to help you build wealth through real estate.

☂️ **[Landlord Insurance](https://www.offermarket.us/insurance?ref=content-am-best-ratings)** rate shopping platform specialized in landlord insurance that meets DSCR loan guidelines</br>
🏚️ **[Off Market Properties](https://www.offermarket.us/insurance?ref=content-am-best-ratings)** marketplace featuring hundreds of exclusive and off market deals posted by wholesalers, tired landlords and distressed sellers.</br>
💰 **[Private Lending](https://www.offermarket.us/loans?ref=content-am-best-ratings)** featuring instant quotes and a simple, low cost, transparent borrowing experience for DSCR loans, Fix and Flip loans and Slow Flip loans.</br>
💡 ***[Insights](https://www.youtube.com/channel/UCRoNHXFVgI36SV0QQpyf9fw)** regularly published to provide you with a knowledge advantage.

---

AM Best ratings assess the financial strength and size of insurance companies, minimums of which are often required by private lenders.

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AM Best Ratings | OfferMarket

AM Best Ratings

<br>

## Seller needed to sell fast

<br>

If you need to sell your house fast, we are here to help. Let's meet a seller who received multiple competitive offers within 2 days of launching his Get Offers campaign and closed his sale in just 25 days.

<br>

## Home in poor condition

<br>

Dan from Ocean City, MD had a second home in Parkville, MD in poor condition that he needed to sell fast. He understood that the most likely buyer for his house would either be a fix and flip or a rental property investor, and he wanted to get the best possible offer from verified buyers.

<br>

## Sell house fast for most money

<br>

Dan just wanted to sell his house fast for the highest possible net proceeds -- he didn't want to deal with coordinating repairs, interviewing agents, endless showings and post-inspection negotiations, and he certainly didn't want to handle everything himself in a For Sale By Owner process. 

<br>

Dan did his research and found OfferMarket.

<br>

**Day 1:** Dan filled out our [Get Offers form](https://www.offermarket.us/sell).

<br>

**Day 3:** Free professional photography and a 3D home tour was completed and Dan now had a beautiful listing to [showcase his property](https://www.offermarket.us/listings/22-Maple-Hollow-Ct-Parkville-MD-21234-USA). Dan's Get Offers campaign is officially launched.

<br>

**Day 5:** After just two days of tour requests and buyer verification coordinated entirely by OfferMarket, Dan receives multiple competitive offers at his target price point.

<br>

**Day 7:** Dan selects the best offer (AS IS, cash, close in 21 days or less)

<br>

**Day 25:** Coordinated by OfferMarket, Dan closes his transaction and receives his target proceeds.

<br>

## Seller feedback:

> From start to finish OfferMarket was wonderful to work with. They communicated well in every step of the process and made me feel very comfortable that I was in good hands. I got the price I was looking for and they made the closing process very easy.  I highly recommend OfferMarket.

<br>

## Buyer feedback:

> I enjoyed working with OfferMarket. The team there was very responsive and easy to deal with. They kept to the timeline and the deal closed without a problem.

<br>

Every seller has a story, read our [Google Reviews](https://www.google.com/search?q=offermarket) to see if selling your house fast with OfferMarket is right for you.

<br>

## Sell My House Fast: Get Offers with OfferMarket 👇

Every seller has a Sell My House Fast story to tell. Meet Dan, who sold his house in Parkville, MD in 25 days.

Sell my house fast seller success stories

large_5-Star Reviews - OfferMarket Seller Stories - Blog.jpg

medium_5-Star Reviews - OfferMarket Seller Stories - Blog.jpg

small_5-Star Reviews - OfferMarket Seller Stories - Blog.jpg

thumbnail_5-Star Reviews - OfferMarket Seller Stories - Blog.jpg

Sell My House Fast Success Stories - Blog.jpg

Sell My House Fast: Parkville, MD - OfferMarket Blog

Sell My House Fast Success Story: Dan From Parkville, MD

<br>

If you are buying a house and you are requesting a repair, concession, or change in purchase price, then the answer is yes -- you need to provide the inspection report to the Seller to validate your request.

<br>

If a buyer requests repairs or concessions, they are required to share the home inspection report with the seller in real estate transactions.

Does Buyer need to provide home inspection report to Seller?

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Does Buyer need to provide inspection report to Seller?

Does the Buyer need to provide the inspection report to the Seller?

Grow your real estate investing business with the most competitive DSCR loan product. OfferMarket provides DSCR rental loans, bridge loans, hard money, fix and flip, slow flip, and ground up construction loans.

Private Lending | OfferMarket

Private Lending

What Is ARV?

ARV and the BRRRR Strategy

How to Calculate After Repair Value

Steps to Determine ARV Accurately

Tips for accurately estimating ARV

Frequently Asked Questions

Where do you find After Repair Value?

Summary

Build Wealth Through Real Estate with OfferMarket

## **What Is ARV?**

[After Repair Value](https://www.offermarket.us/blog/after-repair-value), commonly referred to as ARV, represents the projected market value of a property after it has been renovated. It’s an essential figure for real estate investors, fix-and-flip professionals, and lenders alike. ARV is used to evaluate the profitability of a real estate investment and helps guide decisions on purchase price, renovation budgets, and financing strategies.

Example:

Imagine you purchase a property for $100,000 and invest $50,000 in upgrades. If, after the improvements, the property appraises at $200,000, then the ARV is $200,000. To arrive at this figure, investors analyze recently sold properties with similar features—known as “comps”—in the same neighborhood.

## ARV and the BRRRR Strategy

When using the [BRRR](https://offermarket.us/blog/brrrr-method) strategy (Buy, Rehab, Rent, Refinance, Repeat), ARV becomes even more important. Your total investment—purchase price plus rehab costs—should ideally not exceed 75% of the ARV.

For example, if you buy a home for $50,000 and put $25,000 into renovations, that’s a $75,000 total investment. If the property appraises for $100,000 post-rehab, you’ve hit that 75% threshold. When refinancing, most lenders will offer up to 75% of the property’s value. In this case, that’s $75,000—allowing you to recover all your invested capital.

## **How to Calculate After Repair Value**

To calculate ARV, follow this simplified approach:

### Step 1: Research Comps
Search for recently sold homes in the area with similar square footage, layout, year built, and condition (post-renovation).

### Step 2: Adjust for Differences
If a comparable home has additional features like a finished basement or larger lot, adjust the value of your target property up or down accordingly.

### Step 3: Determine Value Per Square Foot
Take the sale price of a comparable home and divide it by its square footage. Multiply this price-per-square-foot by your property’s size to estimate its ARV.

**Example:** a nearby renovated home sold for $250,000 and is 2,000 SqFt. $250,000 ÷ 2,000 = $125 per SqFt. If your property is also 2,000 sq. ft., the estimated ARV is $125 × 2,000 = $250,000.

Use [comp tools](https://www.offermarket.us/blog/comp-tools) to complete this process as accurately and efficiently as possible.

## **Steps to Determine ARV Accurately**

### 1. Understand Local Market Trends
A strong or declining market can influence future values. Adjust your expectations based on whether prices are rising or falling.

### 2. Assess Renovation Scope
Factor in how much work is needed. Cosmetic upgrades may yield a higher ARV than structural repairs alone.

### 3. Leverage Local Experts
Realtors, appraisers, and contractors who know the market can offer invaluable insight on post-renovation value.

### 4. Use Online Tools
Use [comp tools](https://www.offermarket.us/blog/comp-tools) and websites like Zillow, Redfin, and Realtor.com to help guide your projections.

## **Tips for accurately estimating ARV**

ARV estimates do not need to be perfect but they do need to be defensible and reasonable.

1. Gather the three most relevant comps -- closest, similar floorplan, similar architectural style, similar SqFt, 
2. Adjust for differences.
3. Consider current interest rates and buyer demand.
4. Don’t overestimate the impact of renovations—stick to realistic market values.

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## **Frequently Asked Questions**

### Can an Appraiser Estimate ARV?

Yes! In fact, most private lenders for [fix and flip loans](https://www.offermarket.us/fix-and-flip-loan), [hard money loans](https://www.offermarket.us/hard-money-loan) and [bridge loans](https://www.offermarket.us/bridge-loan) will require an independent certified appraiser to perform an ARV appraisal. 

In an ARV appraisal report, the appraiser will reference your [scope of work](https://www.offermarket.us/blog/scope-of-work) and compare the finished product to similarly upgraded properties in the area. Their opinion of value will be marked "subject to repairs" which is another way of saying ARV. The lender may also require the appraiser to include their opinion of As Is value in the report.

## **Where do you find After Repair Value?**

If you're looking to identify ARV on a property, start with these tools and resources:

- MLS (Multiple Listing Service): For real-time sales data.
- [PropStream](https://www.offermarket.us/blog/propstream-pricing): built-in comp tool
- Zillow, Redfin: Offer sales history and value estimates.
- Local Agents and Appraisers: Offer professional analysis and boots-on-the-ground insights.
- Investor Communities: Networking with other real estate investors can help you validate your numbers and get feedback on your assumptions.

## **Summary**

Mastering ARV is essential for successful real estate investing. Whether you’re flipping homes or building a rental portfolio, knowing how to estimate a property's post-renovation value allows you to invest with confidence and protect your bottom line. Use comps, rely on expert insights, and always leave room for unexpected costs.

## Build Wealth Through Real Estate with OfferMarket

Join OfferMarket for exclusive access to tools, resources, and investment opportunities designed for savvy real estate investors:

💵 **[Private lending](https://www.offermarket.us/loans?ref=content-arv)**</br>
🛡️ **[Insurance rate shopping](https://www.offermarket.us/insurance?ref=content-arv)**</br>
🏘️ **[Off market properties](https://www.offermarket.us/listings?ref=content-arv)**</br>
💡 **[Market insights](https://www.youtube.com/channel/UCRoNHXFVgI36SV0QQpyf9fw)**</br>

Ready to grow your portfolio? [Sign up today](https://www.offermarket.us/login?ref=content-arv)—membership is free.

---

[![Got off market listings - access deals](https://cms.offermarket.us/uploads/Got_off_market_listings_access_deals_73468e4b7a.jpg)](https://www.offermarket.us/listings)

---


The After Repair Value (ARV) is the value of a property after completion of a renovation. 

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ARV (After Repair Value)

What Is ARV?

ARV and the BRRRR Strategy

* Takes 2 minutes, no credit pull