The terms “project value” and “after-renovation value” (ARV) refer to the expected value of a property after renovations or improvements have been completed.
- Project Value : This is the estimated market value of a property after all renovations or construction projects have been completed. This may include both the current value of the property and the expected added value from the renovations.
- After-Renovation Value (ARV) : This specifically refers to the expected value of the property after the renovations or improvements. It is the price that the property could fetch on the market after all work is completed.
Both terms are often used in the context of real estate financing, such as when calculating Loan-to-Value (LTV) and Loan-to-Gross Development Value (LTGDV) , as they reflect the ultimate value of the real estate project.