Off-Plan Purchase Risk Calculator
Work out how much money is committed before an off-plan property completes, and the extra deposit needed if it is valued below the price.
💼 Are you a real estate agent or broker? Send this calculator to your buyers on your own branded listing page — every enquiry comes straight to your WhatsApp. Create free agent page →Buying off plan means paying substantial sums years before the property exists, on a price agreed against a market that may look very different at completion. The two exposures are the cash committed in stages, which is at risk if the developer fails, and the valuation gap if the property is worth less than you agreed to pay.
The valuation gap is the one that catches buyers out. Lenders advance a percentage of value, not of price, so a down-valuation is made up entirely from your own money at the moment you have least flexibility.
The two exposures
Cash committed = reservation fee + the exchange deposit + any stage payment, all paid before you own anything. The valuation gap is the difference between what a lender would advance against the price and against the actual value at completion, and it has to come from your own funds.
Worked example
On a 400,000 off-plan purchase with a 2,000 reservation, a 10% exchange deposit and a further 10% stage payment, 82,000 is committed — 20.5% of the price — for 24 months. If the market falls 10%, the property is worth 360,000. At a 75% maximum the lender advances 270,000 rather than 300,000, so 30,000 of extra cash is needed at completion.
Ask where your deposit is held
Whether staged payments sit in a protected account, are covered by a warranty or bond, or are simply released to the developer varies enormously by jurisdiction and by contract. This is the single most important question to ask before exchanging, and the answer should be in writing.
Turn a calculation into an enquiry
Buyers who run these numbers are ready to talk. Give every listing its own page with your photo, phone and WhatsApp on it — leads land straight on your phone.
Create your free property pageFrequently asked questions
What happens if the developer fails?
It depends entirely on how your money is protected. Where deposits are held in escrow or covered by a statutory warranty, most is usually recoverable; where they were released to the developer, unsecured creditors rarely recover much.
What if the property is worth less at completion?
You are still contractually bound to complete at the agreed price, and the lender will only advance against the lower value. The shortfall comes from your own funds, and failing to complete usually forfeits the deposit.
Can completion be delayed?
Frequently, and most off-plan contracts allow generous extensions before a buyer can walk away. Check the long-stop date and what remedies you have, because a year of delay changes your finance, your rate and possibly your circumstances.