Do valuers notice the details?

[charttv]

just curious, has anyone known a valuer who pays attention to the details when it comes to the fitout of an IP?

For instance, do they note if a kitchen benchtop is esse stone instead of laminate? Do they notice hardwood floors versus cheap vinyl, 31 corse brickwork instead of 28, etc or do they just go off comparable sales and couldn't give a hoot?

For instance, if you have two identical 3 x 2s next door to each other, one basic spec and one primo spec and the basic spec sells for 300k, will they value the primo spec at 300k and completely ignore the niceties?

 

[Aaron_C]

They do notice it but depends on comparable sales.

 

[RightValue]

just curious, has anyone known a valuer who pays attention to the details when it comes to the fitout of an IP?

For instance, do they note if a kitchen benchtop is esse stone instead of laminate? Do they notice hardwood floors versus cheap vinyl, 31 corse brickwork instead of 28, etc or do they just go off comparable sales and couldn't give a hoot?

For instance, if you have two identical 3 x 2s next door to each other, one basic spec and one primo spec and the basic spec sells for 300k, will they value the primo spec at 300k and completely ignore the niceties?

Of course they do, that is why they are taking notes, it is all in the report to the client (who is the bank).

As for the difference between the two, well how much more will the market pay for the primo spec dwelling and can you prove it?

Yes there should be a difference, both in resale price and in valuation but my experience is that on resale the cost differential between the two is not always reflected by the market. Cost does not equal value. The main component in any property is usually the land or imputed land value, this is what appreciates, whereas buildings depreciates.

These things often vary by area and can also depend a lot on the area and what is expected.

In lower socio economic areas the primo spec is not as important as the price they pay. In well heeled areas where primo spec is standard, the buyer will be working out how much replacing the basic spec with the primo spec and there could be a noticeable difference.

 

[Rolf Latham]

Cost does not equal value.

so are you telling me that the 20 000 I have just spent on window furnishings wont be returned on the val dollar for dollar

ta
rolf

 

[DaveM]

so are you telling me that the 20 000 I have just spent on window furnishings wont be returned on the val dollar for dollar

What about "My house is worth more than other similar houses because I have owned it from new. And it has downlights"

 

[jonmardell]

In a lot of reports you will see that when they list the comparable sales they will also note the quality of finishing in comparison to your property to they definitely take notice. Most of the time it come down to how well they know the area and the comparable sales they are using.

just curious, has anyone known a valuer who pays attention to the details when it comes to the fitout of an IP?

For instance, do they note if a kitchen benchtop is esse stone instead of laminate? Do they notice hardwood floors versus cheap vinyl, 31 corse brickwork instead of 28, etc or do they just go off comparable sales and couldn't give a hoot?

For instance, if you have two identical 3 x 2s next door to each other, one basic spec and one primo spec and the basic spec sells for 300k, will they value the primo spec at 300k and completely ignore the niceties?

 

[RightValue]

so are you telling me that the 20 000 I have just spent on window furnishings wont be returned on the val dollar for dollar

ta
rolf

They are chattles, therefore they have zero value for mortgage security purposes.

I have seen $100k spent on drapes in a suburb with an average house price well under $400k.


Oh and neither does the 6 by 2 studs you built the frame with when you owner built the property.

Or the $40k kitchen as part of a $100k renovation of a 14 square 1970's house in an area where the average value is $320k.