Glossary
As-if-complete value
Also called: on-completion value, end value
The as-if-complete value is a valuer's opinion of what a property will be worth once planned construction or renovation is finished, assessed at today's market conditions on the assumption the works are completed as specified.
An example
For a refurbishment loan, the valuer reviews the plans and costings and reports an as-if-complete value. The lender uses it alongside the cost of works to size the facility.
Why it matters
The as-if-complete value depends on the works being completed to the plans and budget. Cost overruns, variations or market changes can mean the finished property is worth less than assumed.
Points to check
Ask what plans, specifications and approvals the valuer relied on, because a change to the design or finishes can change the value. Check the valuation date and whether the lender will re-test the value before later drawdowns. Confirm whether the figure is stated including or excluding GST. If the project changes scope during construction, ask whether a fresh valuation is needed and who pays for it. Compare the as-if-complete value with recent sales of genuinely similar finished property.