How to Ensure Market Value Aligns with Off-the-Plan Contract Prices

Buying property off the plan is a popular path for first home buyers and investors alike. It lets you lock in today’s price and pay gradually while the property is being built. But one key concern often arises — what if the market value at settlement is lower than the price in the contract?

Here’s how you can ensure the property you’re buying off the plan remains in line with its market value when the time comes to settle.

Why Market Value at Settlement Matters

When you buy off the plan, the contract price is set at the time of signing, not settlement. That means:

• If property values go up, you’ve made an instant gain.
• If values fall, your lender may value the property lower than your contract price.

If that happens, you might need to contribute more funds at settlement to cover the shortfall. Understanding how to avoid or prepare for this is essential.

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Research Comparable Sales

One of the best ways to ensure your off-the-plan purchase aligns with market value is by researching similar properties nearby.

Look for:

• Recent sales of completed apartments or townhouses in the same suburb
• Similar floorplans, number of bedrooms, and quality
• Sale dates within the past six months

Websites like Domain, Realestate.com.au, and CoreLogic provide recent sales data. Comparing these figures to your contract price can give you confidence you're paying the right amount.

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Choose Projects in Growth Areas

Buying in a location with planned infrastructure, growing demand, and limited supply helps protect against a drop in market value.

Look for areas with:

• New transport links (e.g. rail, road upgrades)
• Employment hubs and education institutions
• Lifestyle amenities like parks, shopping centres and cafes

When the local area is improving, market values tend to rise by the time your property is ready for settlement.

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Buy from a Trusted Developer

The reputation of the developer plays a big role in the end value of your home. Trusted developers are more likely to:

• Complete the build on time
• Deliver high-quality finishes and layouts
• Maintain resale and rental appeal

Low-quality construction or delays can drag down the property’s final valuation.

Understand Your Valuation Timing

Lenders will usually arrange a valuation closer to settlement — not when you sign the contract. This is when they assess whether the property is still worth the contract price.

To prepare:

• Stay updated on local market trends during the construction phase
• Request regular updates and photos from the developer
• Ask your broker or lender for a pre-valuation if concerned

If there’s a risk of a valuation shortfall, you’ll need to have backup funds or negotiate with your lender early.

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Work with a Good Mortgage Broker

An experienced mortgage broker can guide you through valuation concerns and help you secure the right finance.

They can:

• Recommend lenders that are more familiar with off-the-plan properties
• Help with low deposit or guarantor options if needed
• Advise on steps to reduce valuation risk

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Buy Smart with Coposit

Coposit allows buyers to purchase off-the-plan property with just $10,000 upfront and weekly instalments — with no loan or interest during the build. This means you can lock in today’s price while gradually preparing for settlement.

Coposit only works with reputable developers in growth suburbs. This reduces the risk of overpaying and increases the chances your valuation will match or exceed the contract price at settlement.

When using Coposit, you benefit from:

• Projects vetted for quality and location potential
• Flexible deposit payments without needing to rush finance
• More time to build financial stability before settlement

Danks St District | Off the plan Sydney | Secure with $20k and $946 x 82 weeks

Key Tips for Valuation Alignment

To ensure your off-the-plan contract price aligns with market value:

• Compare local sales: Research similar properties regularly.
• Pick the right location: Focus on growth areas with strong infrastructure.
• Choose reliable developers: Trustworthy builders protect value.
• Get finance advice early: Work with a broker who understands the risks.
• Stay informed: Monitor the market until your property