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How do we calculate Arrived Valuations?

Korin Hedlund avatar
Written by Korin Hedlund
Updated over 2 weeks ago

Starting 12 months after the property’s initial offering, Arrived updates the valuation for each property every quarter using the following inputs:

Property value estimates

We employ a hybrid approach to estimating the market value of each property.

  • Comparable sales-based valuation

  • Income-based valuations using investor cap rates

This dual-method approach creates a more balanced and realistic snapshot of value, especially for long-term rental assets. You can also track property values as a metric on your Portfolio Page.

Manual data review

Arrived’s Investments team manually reviews valuation data each quarter to remove outliers, correct anomalies, and ensure consistency across properties and markets.

LLC balance sheet updates

Arrived Valuation also factors in:

  • Cash reserves

  • Outstanding liabilities (e.g., loan balances, accrued taxes)

  • Asset updates related to operational income and expenses

Customized amortization of expenses

Upfront expenses—like closing costs, renovations, and furnishings—are amortized based on their actual useful life. For example:

  • A new roof may be amortized over 15–20 years

  • A furniture package may be amortized over a 5-year period.

This schedule replaces our previous flat 5-year approach and aligns more closely with how institutional real estate portfolios manage costs.

Disposition costs removed

Previously, we have included estimated disposition costs—such as agent commissions and closing fees, to reflect the potential net proceeds if a home were sold. However, investors told us that this approach was confusing and did not align with how they think about current value.

So we’ve updated our methodology: Arrived Valuation now reflects the property's estimated value before any sales-related costs. This change provides a clearer picture of what your investment is worth today, without relying on assumptions about potential future sales.

We will continue to work on reducing exit costs; however, they no longer impact your current valuation.

Hold period assumptions (for future properties)

While this doesn’t change the Arrived Valuation math today, it influences how we plan future investments:

  • Financed properties: estimated hold aligns with mortgage fixed-rate terms (5, 7, or 10 years)

  • Unfinanced properties: estimated hold = 5–15 years

  • Fund portfolios: estimated hold = 5–20 years

To learn more about Arrived Valuation, check out the resource below:

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