Browse Forums Home Finance Re: Valuation for full loan approval 2Feb 04, 2010 8:59 am Dear tortoise, Valuers will normally value the land at the contract price plus the builders fixed price contract for the construction. So if the house land package consisted of land worth $250,000 and a builders fixed price contact of say $275,000 - then the valuer will normally value this at $525,000. If the valuer thinks that the builder is overcharging you for the build then they will valuer that portion lower and the overall valuation will come in lower than the $525,000. Again if the valuer thinks the land is overpriced they will reduce this component and again they will value the overall valuation lower. The lender will then lend on the valuation amount not the purchase contract amount. This does not happen a lot - but is something to be aware of. The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19097 Hi Kristy Around $1.7-1.8m or around $4,600/sqm. if you PM me your email I will send you a break up in a spreadsheet so you can get an understanding of the costs for… 1 9956 1 2989 |