Cosmetic Valuations

[albanga]

Hey Brokers,
Jut interested from your experience how valuers assess cosmetic renovations?

I am completing a full Reno of my home at the end of the year which will include:
Painting
Render
Resprayed roof
New windows
Landscaping

In terms of market value this will add considerable value but it will be my PPOR so will likely draw equity later.

 

[Jamie M]

Yes - it should add value. As to whether it will be considerable is a tough one to answer.

I've seen heaps of clients gain equity with this method. Buy something in need of some love - spruce it up with cosmetic renos, access equity and go again.

Cheers

Jamie

 

[albanga]

Yes - it should add value. As to whether it will be considerable is a tough one to answer.

I've seen heaps of clients gain equity with this method. Buy something in need of some love - spruce it up with cosmetic renos, access equity and go again.

Thanks Jamie
Valuers are obviously a lot more conservative than an emotional buyer and would understand the costs involved in a cosmetic reno.
Roughly = Painting 3k, Render 6k, Roof 2k, Landscaping 3k = 14k

These to a buyer though could potentially add 50k + of value.
Just wanted to know if they themselves are not exempt from getting carried away with shiny walls and pretty flowers.

 

[serendip]

Recent personal experience.

July 2014 - Valued at $460K
Mar 2015 - 'reno'
- paint outside, some rooms inside, deck, garden tidy up, spend ~$4K
Apr 2015 - valued at $500K

The market had moved about 4-4.5% in that time so I reckon I made about $20K with that $4K spend. I should note that the house was renovated in 2008 so there was limited scope for cosmetic reno.

 

[Redom]

Hey Brokers,
Jut interested from your experience how valuers assess cosmetic renovations?

I am completing a full Reno of my home at the end of the year which will include:
Painting
Render
Resprayed roof
New windows
Landscaping

In terms of market value this will add considerable value but it will be my PPOR so will likely draw equity later.

Should definitely increase the value, much of it will depend on the valuer of the day.

Seen variances of 10% on a 300k property across 4 valuations on this play multiple times.

For those trying to extract every last dollar and strong servicing - i liked to do the original loan at 80% and valuer shop them around to 90. Can make quite a difference.

Cheers,
Redom