These are two different questions an appraiser can be asked to answer about the same property: what is it worth right now, and what will it be worth once the work is done. Renovation lending typically needs both answers, from two different points in the appraisal process.
As-is value
The property’s value exactly as it stands on the day of inspection — no assumption about future work, no matter how obviously needed that work might be.
After repair value (ARV)
The estimated market value once planned renovation is complete, built from comparable sales of already-renovated properties rather than the subject’s current condition. See our full ARV page for how that estimate is built and where it commonly goes wrong.
How the two connect through the appraisal
An appraiser can develop an as-is value, an ARV, or both in the same assignment. Where the appraisal is explicitly conditioned on planned work being finished, it is completed on a subject-to-completion basis rather than as a simple as-is report.
Why lenders want both numbers on a renovation loan
As-is value typically constrains the initial acquisition loan amount; ARV typically constrains the total loan including the rehab holdback. A lender sizing a renovation loan against only one of the two figures is missing half the picture.
Which one governs your loan
That depends entirely on the specific loan program — a standard purchase or refinance relies on as-is value alone, while renovation and fix-and-flip financing sizes against ARV, sometimes with a separate as-is constraint. Confirm which basis a given lender uses before assuming either figure applies.
As-Is vs. ARV Appraisal FAQ
A valuation of the property exactly as it currently stands, with no assumption about future repairs or renovation.
An estimate of the property’s market value after planned renovation is complete, built from comparable sales of already-renovated properties.
Renovation and fix-and-flip lending commonly relies on both — as-is value for the acquisition side and ARV for total loan sizing. A standard purchase or refinance typically needs only as-is value.
Yes, based on plans and specifications for the work, which is the same underlying idea as a subject-to-completion appraisal.
The lender’s appraiser. A borrower’s own ARV estimate is useful for underwriting a deal before buying, but the appraisal governs the actual loan.