Valuations - land zoning

[pipsal]

Do valuations tend to take into account the land zoning 'value' - if it is an LMR block for eg?

Houses on LMR blocks that I've looked at are obviously priced accordingly - same size block in same area with similar current dwelling are about $100k dearer - but does a valuer/bank take this into consideration, not just for purchase but for equity vals later on?

 

[tcocaro]

In essence yes because on the valuation report it includes the zoning type for the block. It will also be what the valuer uses to find comparable i.e. blocks of the same zoning.

However if there is no approved plans, or proposal on foot to develop the site the valuer will typically not examine the block for development potential and factor this in. It will be on a strict comparable basis.

Hope this answers your question.

Do valuations tend to take into account the land zoning 'value' - if it is an LMR block for eg?

Houses on LMR blocks that I've looked at are obviously priced accordingly - same size block in same area with similar current dwelling are about $100k dearer - but does a valuer/bank take this into consideration, not just for purchase but for equity vals later on?

 

[beachgurl]

Valuers don't necessarily value a property based on its allowable proposed use, even if approved. A valuer based her valuation figure of my property on its current use, a 3 bed home on a large block, rather than a DA approved subdivision into 2 blocks. Guess its the luck of the draw with the valuer who turns up to your property.

 

[SOP]

Yes the zoning is considered. Highest and Best Use is the method of value.

 

[RPI]

Zoning is important BUT

Valuer might also know that there is overland flow issues in that area or the house might be too expensive to make development worthwhile or there might be an oversupply of development sites in that area.