Working with valuers

[Mush]

Invstor,estate agents opinions carry no weight with the banks and some are prone to telling you what they think you would like to hear to secure your business.
Vaughan,I am trying to eliminate the guess work by paying a valuer a fee to advise/liase with me to agree to a pre-determined final valuation based on the reno being finished to a pre-determined level that will be accepted by a pre-determined lending institution taking into account their current lending criteria(ok this could change) and based on current market conditions.
Valuation firms DO undertake feasibility studies on developments so why not renos?

 

[Mush]

This method would be an excellent tool to use if you are planning to hold the finished product.

 

[Mush]

Why not hedge your bets and renovate with a degree of certainty?

 

[SOP]

Valuers do provide this service. Normally for a new build. But normally after a contract to build has been entered into. But you will find the end value normally comes in at land value plus construction cost.

 

[Colin Rice]

That said I suppose it is their money that we are trying to borrow so I suppose that puts them in the driving seat.......

You hit the nail on the head there.

It is theoretically possible a bank will accept a valuation from a valuer on their panel but I personally wouldn't rely on it.

Bank valuations are a duopoly with two channels of distribution.

 

[Colin Rice]

estate agents opinions carry no weight with the banks and some are prone to telling you what they think you would like to hear to secure your business.

AKA price conditioning. Common REA tactic.

 

[vaughan]

Invstor,estate agents opinions carry no weight with the banks and some are prone to telling you what they think you would like to hear to secure your business.

Only certified valuers can issue certified valuations.

Vaughan,I am trying to eliminate the guess work by paying a valuer a fee to advise/liase with me to agree to a pre-determined final valuation based on the reno being finished to a pre-determined level that will be accepted by a pre-determined lending institution taking into account their current lending criteria(ok this could change) and based on current market conditions.

This is not a feasibility study, it's a valuation.

A feasibility study look at the business aspects of the project. This requires knowledge of accounting, financial and legal issues and is not in the area of expertise of a valuer.

 

[INVSTOR]

AKA price conditioning. Common REA tactic.

I can see where people are coming from now. One of the agents I've gotten advice from is also a local developer and sells her product for top prices.

I've had a certified valuation performed from a valuer for tax reasons. A few months later when I applied for a loan my bank wouldn't accept it unless it was performed by HTW. It wasn't so I had to pay another $300 for a valuation. The valuation ordered by bank was a lot more conservative.

 

[Charlotte30]

A valuer works with previous sales to assess the likely value range. You are asking him to take a guess at the possible value based on work not yet done. Very difficult to assess in my opinion. Banks like certainty.

Cheers
Charlotte30

 

[Mush]

A valuer works with previous sales to assess the likely value range. You are asking him to take a guess at the possible value based on work not yet done. Very difficult to assess in my opinion. Banks like certainty.

Cheers
Charlotte30

No Charlotte,I am asking him to advise/liaise with me on the project and set a finished valuation based on what we discuss. i.e. mid-range kitchen,extra bedroom at 5x4 with en-suite,no swimming pool,large pergola etc.
If all finished to high standard,this property in this area will enable him to value at $xxx.