Some people I have spoken to seem to be confused between FMV and ARV. When they talk about a discount (10, 20, 30, 40%) off they seem be interchanging the terms. It's hard to nail down which they're really referring to.
FMV (fair market value) is the going value on a property at its CURRENT state of condition.
ARV (after repair value) is the value AFTER rehab. After recognizing its full potential.
I've had this same problem with retail establishments. When referring to mark up price on merchadise the numbers never add up. They neglect to realize that the percentage mark up on cost and percentage mark up on selling price are two differnet figures. Thus their number never seem to make sense.
I think we should create a standard when referring to percentage relating to FMV and ARV.