Browse Forums Home Finance Re: Valuation for construction 2Jan 26, 2021 9:30 am Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Valuation for construction 3Feb 04, 2021 11:25 pm Hello - was the valuation short on the land component or the build component? If its the build Chris' first point has some merit - but you could also go back to the builder and ask them to sharpen their pencil a little.... otherwise removing extras and doing them later is another idea as long as it doesn't affect the overall valuation. You may also find another valuer comes back with a different valuation - ask your broker to do another one, would mean changing banks If it's the land - can you rustle up evidence to support the land price? Sales listings showing sales at a higher price / smaller lot? Good luck! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Valuation for construction 4Feb 22, 2021 10:50 am Just wondering what type of evidence would you suggest in support of the land valuation? We are currently in the prelimenary process of arranging a construction loan for our KDR and it's currently pending valuation. its a 658m2 block, only reference I've used is the Valuer General of NSW. The suburb sales demand have been for a lot of KDR due to the size of the blocks and it's proximity to more highly desirable suburbs. Sale listings are mostly between $750-$850k for mid 1960's 2-3 bedroom houses sitting on 650m2 - 700m2 blocks thanks for your feedback! Re: Valuation for construction 5Feb 22, 2021 11:01 am gallopgrove Just wondering what type of evidence would you suggest in support of the land valuation? We are currently in the prelimenary process of arranging a construction loan for our KDR and it's currently pending valuation. its a 658m2 block, only reference I've used is the Valuer General of NSW. The suburb sales demand have been for a lot of KDR due to the size of the blocks and it's proximity to more highly desirable suburbs. Sale listings are mostly between $750-$850k for mid 1960's 2-3 bedroom houses sitting on 650m2 - 700m2 blocks thanks for your feedback! The valuer generals report won't help a bit, that isn't anything like the sales value - thank goodness!! when did you buy the land? If recent, it will probably be the land + construction cost cross checked against the comparable sales in area, if it is not recent then they will simply compare it to the other like properties - similar land size, attributes etc and adjust for age / finish. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Valuation for construction 6Feb 22, 2021 11:39 am becjarrettdalton The valuer generals report won't help a bit, that isn't anything like the sales value - thank goodness!! when did you buy the land? If recent, it will probably be the land + construction cost cross checked against the comparable sales in area, if it is not recent then they will simply compare it to the other like properties - similar land size, attributes etc and adjust for age / finish. ok thanks I wasn't really sure what the point of the Valuer General is, I guess it's just used by the council for land rates purposes. Anyways apologies if I was a bit vague in explaining our situation. We currently have an investment property purchased 10 years ago which we would like to knock down rebuild and make it potentially our forever house. The property is mortgaged with BANK A but we'd like to refinance the KDR and existing mortgage to BANK B. For us to achieve this I think it hinges on how much the value of the land is and not so much the building sitting on it because it will be replaced by our planned build. Am I correct? Re: Valuation for construction 7Feb 22, 2021 12:18 pm In essence - yes, but in fact they will look for "like" houses to compare to it... Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Valuation for construction 8Mar 02, 2021 10:12 am gallopgrove ok thanks I wasn't really sure what the point of the Valuer General is, I guess it's just used by the council for land rates purposes. Anyways apologies if I was a bit vague in explaining our situation. We currently have an investment property purchased 10 years ago which we would like to knock down rebuild and make it potentially our forever house. The property is mortgaged with BANK A but we'd like to refinance the KDR and existing mortgage to BANK B. For us to achieve this I think it hinges on how much the value of the land is and not so much the building sitting on it because it will be replaced by our planned build. Am I correct? Yes. Any new valuation going forward will be determined by current land value plus the new construction. Then it will be compared with current existing residences in the area to make sure its comparable. Since you have owned the land for over 10 years, you would think that the land value shouldn't be an issue as you would assume it would have increased a fair bit in that time frame. To get an idea, what you can do is to get a full valuation done on the existing property. With it you will get a valuation comprising individual land value and improvements (existing dwelling). It will at least give you an idea on what the existing land value may be with before you dip you toe in the water and proceed further. Cheers, Tom DIY, Home Maintenance & Repair That laser level looks lovely! We bought one for less than a quarter of that price off eBay. It worked really well for us and it's still going now, five years later. After… 1 16714 Hi, My home construction is complete, and the handover is scheduled next week. However the construction has been delayed and I have raised this to the builder. The… 0 5329 The fastest thing a builder will do is bank your cheque, those systems work perfectly with lightning speed, everything else is slow burn. Just the way it is. 1 8708 |