Hi All,
I've read the various threads around valuations (thanks, RightValue) but none of them provide a specific answer for me, so here goes.
I have an IP "valued" at $450k, owing about $270k.
I want to refinance to 80% LVR, to fund the purchase of a second IP.
My question is around how much weight is placed on recent sales in the same block, versus comparable properties in the same street/block.
In my case my unit block has 24 units, all the same (2 bedders, LUG).
In September 2009 an unrenovated unit sold for $340k.
In December 2009 a renovated unit sold for $425k. REA tells me he feels sorry for the vendor who sold for $340k.
Another renovated unit is now under contract for $450k.
I have an RP data report that estimates the value at between $333k and $399k, showing comparable sales of 2 bedders in the area ranging from $370k to $440k.
What are my chances of getting my (renovated) unit valued at $450k – I realise the valuers/banks will be conservative but if they take $450k and reduce it by 10% (405k) it means I can't purchase the property I want to purchase…..
I'm thinking the valuer will notice the big "For Sale – Under Contract" sign at the front of the property, and I think $450k is fair value.
I would appreciate people's opinions and whether I need to lower my expectations of the value of my place….
Thanks again
Roosterman
I've read the various threads around valuations (thanks, RightValue) but none of them provide a specific answer for me, so here goes.
I have an IP "valued" at $450k, owing about $270k.
I want to refinance to 80% LVR, to fund the purchase of a second IP.
My question is around how much weight is placed on recent sales in the same block, versus comparable properties in the same street/block.
In my case my unit block has 24 units, all the same (2 bedders, LUG).
In September 2009 an unrenovated unit sold for $340k.
In December 2009 a renovated unit sold for $425k. REA tells me he feels sorry for the vendor who sold for $340k.
Another renovated unit is now under contract for $450k.
I have an RP data report that estimates the value at between $333k and $399k, showing comparable sales of 2 bedders in the area ranging from $370k to $440k.
What are my chances of getting my (renovated) unit valued at $450k – I realise the valuers/banks will be conservative but if they take $450k and reduce it by 10% (405k) it means I can't purchase the property I want to purchase…..
I'm thinking the valuer will notice the big "For Sale – Under Contract" sign at the front of the property, and I think $450k is fair value.
I would appreciate people's opinions and whether I need to lower my expectations of the value of my place….
Thanks again
Roosterman