As-Is Value
Quick Answer
The current market value of a property in its existing condition, before any renovations.
Definition
As-Is Value is the current market value of a property in its present condition, before any repairs or improvements. It reflects what a buyer would pay for the property today, accounting for all existing deficiencies. In fix-and-flip lending, as-is value is one of several metrics lenders use alongside ARV and loan-to-cost to determine loan eligibility and sizing.
Why It Matters for Flippers
As-is value establishes the floor of the deal. Lenders often have loan-to-as-is-value limits that cap how much they'll lend relative to current value, preventing overleveraged acquisitions. Understanding as-is value also helps flippers negotiate purchase prices — if the as-is value supports your offer, the financing math works. If you overpay relative to as-is, you may need a larger down payment.
Example in a Flip Deal
A distressed property is listed at $150,000. An appraiser estimates the as-is value at $140,000 due to deferred maintenance. The lender caps loans at 80% of as-is value, meaning the maximum loan on acquisition would be $112,000. The borrower needs to fund the gap — or negotiate the purchase price down.
Related Terms
ARV (After Repair Value)
The estimated market value of a property after all planned renovations are complete.
LTV (Loan-to-Value)
The ratio of the loan amount to the appraised value of the property, expressed as a percentage.
Fix and Flip Loan
A short-term real estate loan designed for investors who buy, renovate, and resell properties for profit.
Purchase Price
The price paid to acquire an investment property, before renovation costs.