Browse Forums Home Finance 1 Sep 02, 2015 12:42 pm We are looking at around $25000 for siteworks and $210000 for the house. This puts us slightly over what the bank is prepared to lend us so we would need to use more of our money than we intended. When the bank does it valuation before the plans go to council do they look at just the house or the resale value of the whole package, house and land? I'm just a bit worried that if they do just look at the house the siteworks will push the cost of the build over the valuation and we will have to go back to square one. Hope that makes sense, a bit tongue-tied today. Must be the stress of building a house! Re: What Does The Bank Value On? 2Sep 02, 2015 12:45 pm Ha! OK so generally its the cost of the land, and the cost of the build including the site costs - but there are checks to make sure it isn't too expensive a build (that doesnt sound like it unless the home is tiny?) and to confirm that it does compare with other similar properties in the area (resales of same size land, number of bedrooms etc). In new estates you can hit issues with the land value as per a few other threads on here. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: What Does The Bank Value On? 3Sep 02, 2015 2:37 pm We are lucky in that our neighbour to be is a valuer and he is building to make money. He said he took one look at the site and knows its a money maker. 3 smaller homes on smaller blocks all built by the same builder in the same development as ours sold within days at ridiculous prices. They are on flat land, ours is sloped and has views that won't ever change. We have already had one builder say if we decided to just sell the land they would be interested and another we are getting to provide us with a quote has raved about it and couldn't believe how little we had paid (2 smaller blocks in a new development 5 minutes away sold for $28000 more than we paid so even with site works we are ahead). Since I posted this have heard back from our preferred builder and they have reduced siteworks by over $7000 so its now under $20,000. Our house won't be tiny, probably not huge by todays standards but we are able to keep costs low because they are allowing my husband to do most of the joinery himself as that is his profession. So I'm thinking we may be safe with the bank when we eventually get around to presenting them with something to value! Re: What Does The Bank Value On? 4Sep 02, 2015 2:44 pm Good! great work, enjoy your new home! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: What Does The Bank Value On? 5Sep 04, 2015 5:19 am I saw my valuation yesterday and to me it looked like they have worked out their assumed conservative market value and deducted the full contract price and said the test was land value. They valued the land at $165k less than what we paid for it 12 months ago with a fibro 2br cottage on it. We then found out at the end of the apt they have taken a photo of the wrong house so guess of they have valued the house up the street M Y C U S T O M C O R A L B R O N T E 43 ...............Kitchen! 16 Nov 2016 https://forum.homeone.com.au/viewtopic.php?f=31&t=79581 Re: What Does The Bank Value On? 6Sep 04, 2015 7:34 am MrsJM I saw my valuation yesterday and to me it looked like they have worked out their assumed conservative market value and deducted the full contract price and said the test was land value. They valued the land at $165k less than what we paid for it 12 months ago with a fibro 2br cottage on it. We then found out at the end of the apt they have taken a photo of the wrong house so guess of they have valued the house up the street And we place our financial future in their hands. Scary isn't it? Re: What Does The Bank Value On? 7Sep 04, 2015 7:45 am My hisband has now decided to be difficult and won't listen to a word I say. Hes been swayed by the person building the house next door who is a valuer and is building a shell of a house and doing everything else himself, even though his siteworks are more expensive than ours his quote is $60,000 less than our lowest. I've tried to tell my husband the bank wants a turnkey and won't except 6 or more external quotes driveway/window treatments/flooring etc and the builder this person hes using hasn't got the best reviews. But hes also been swayed by builders raving about our block and now thinks we can build a rubbish house and it won't matter because the views will sell it. Now I know why friends who have built say never again! As a tradesmen get a private inspector although I don't think there worth it in their profession themselves the reminder they serve to the tradesmen doing the work is… 3 27341 They make the room much easier to clean for one, reflect more light (if light colour tiles are used), and you dont end up with dust on the top edge of tiles (cause most… 3 9540 The last home I lived in didn't have a pool and when i went to sell it the agents were not happy, even telling me to put one in to sell the place. The agents weren't happy… 2 4165 |