New Properties

[WASP]

Just wondering

If you build a new property i.e. H&L Package, how do you establish the end value once completed

Comparable's (what if unique)?
Real Estate Agent?
Banks Valuation?
Banks required insurance coverage?
Other?

How do you find out what the Bank valued it at and I'm assuming it's conservative (would that be correct)?

 

[D.T.]

When my H&L package finished building, i went about doing all the completion stuff to it to make it 'established', eg landscaping, painting, etc.

I used recent other sales in the area to get an idea of value, noting which ones were better or worse based on age, size, features, etc. A combination of these numbers was what I went to the bank with to get a topup of finance in order to get deposit for subsequent properties.

The bank valuer didnt tell me his figures, but the loan was approved for the amount i wanted so....

 

[Brady]

Comparable sales

 

[Rixter]

Comparable sales

ditto......

I've had no issues finding out bank valuation.. - you're never going to find out unless you ask. Make sure you ask your bank and not the valuer. You're not a client of the valuer.

 

[HD_ACE]

If not enough comparables, land value + build cost.

Cheers

 

[tobe]

If not enough comparables, land value + build cost.

Cheers

Never in fact. Only comparables. And if its unique, then you have a problem.

The valuer will comment on the price, whether its in line with industry standard, but if the comparables arent there, (even if the valuer agrees with the price), you will have a very dificult time getting finance.

 

[redwing]

If not enough comparables, land value + build cost.

Cheers

What no profit or built in equity...Boo

 

[Scott No Mates]

If not enough comparables, land value + build cost.

Cheers

Cost does not equal value.

If you want a valuation, arrange for your own. If you want to release equity/borrow, get the bank to do one. If you want to feel good, get an appraisal from an REA.

 

[WASP]

Real Estate Agent said it was a unique property and valued it on rental value as there were no comparable's

Rixter, how do you find out what the bank values it at

 

[LeoT]

"how do you find out what the bank values it at?"


Order a bank valuation.

 

[Rixter]

Rixter, how do you find out what the bank values it at

I phone the bank and ask what value they have shown for it on their computer.

 

[MTR]

Just wondering

If you build a new property i.e. H&L Package, how do you establish the end value once completed

Comparable's (what if unique)?
Real Estate Agent?
Banks Valuation?
Banks required insurance coverage?
Other?

How do you find out what the Bank valued it at and I'm assuming it's conservative (would that be correct)?

Vals are everything.

My broker always organises upfront values before we finance we like to know what we are dealing with, it could take 2 or 3 lenders, I pay nothing and then we go with the best in terms of highest value.

As far as unique property goes, its tough, you just have to work harder, research what is similar, why is it unique, more bedrooms etc??? what is it and work through it. I don't understand the rent thing at all, serviceability but nothing whatsoever to do with val??

Granny flats were once unique and difficult to get values, now this has changed.

I had dual property, unique, office at rear (2 bedder), front property 4 bedder, one title, it was unique so I started sourcing sales for 6 bedroom homes and above, then I put together the various upgrades to the property, no problem with the val. The easier you make it perhaps the better result.

I am not passive when it comes to valuations because they are vital moving forward.