Glossary
As-is value
Also called: current market value
The as-is value is the value of a property in its current state at the date of valuation, without allowing for any planned works, approvals or improvements that have not happened yet.
An example
A buyer plans to renovate a run-down house. The lender's valuer reports both an as-is value of the property today and an as-if-complete value assuming the renovation is finished.
Why it matters
Lenders often limit the initial advance by reference to as-is value, releasing more only as works are completed. Knowing which basis applies explains why a lender may advance less at the start than the borrower expects.
Points to check
Ask the valuer which approvals, leases and site conditions were taken into account, and whether any planning permit was given value. A site with a current permit may be valued differently from the same land without one. Check whether the lender uses the as-is value to set the first advance, for example for land settlement, and how that interacts with your equity contribution. If the valuation seems low, ask what evidence supported it rather than assuming it can be changed.