How is it possible to obtain information on how valuations are determined? I am interested in what valuers determine builds equity in a home. Is there a tick sheet that determines the valuation of a property?
How is it possible to obtain information on how valuations are determined? I am interested in what valuers determine builds equity in a home. Is there a tick sheet that determines the valuation of a property?Hi Pynecone,
I talk to a lot of valuers, improvements to kitchens, bathrooms, decks and garages tend to be at the top of the list. Of course major structural cahnges such as adding an extra room will add value if they are done well.
They will also refer to what they call comparitive sales (recent sales of similar properties in the area) to determine whether yours is superior/ inferior to those comparitive sales, and determine value that way.
Features that will decrease value can be specialised properties eg you have built a house which looks like an Evlis monument (don’t laugh it has been done!). Also the zoning of the property. Eg an old shop front that has been converted into a house but the zoning is not residential.
Hope this help a little.
Cheers
Nathan.
Thank you Nathan, I guess by the lack of response this is not an exact science but one based on feel. The obvious reno’s will do the trick but I was more interested in a formula of how much you value add by completing any one of the reno’s. i.e. remodel kitchen $10k on house purchased for 250k in x suburb (appreciating @ 10% last 3yrs) = $y capital gain. Thanks again for post. Geoff
Hi Geoff,
Unfortunetly no magic formula exists for valuations! I suppose valuers still like to eyeball the changes that have been made to the property, so see how well the kitchen has been done up!
cheers,Nathan.
Thank you once again Nathan – I’ll just roll the sleeves up and see what happens.
Cheers, Geoff.Hi Geoff, don’t know a formula, but when we purchased, with a fair bit of tidying up, internal repainting, fencing, some kitchen reno, we had gained $75k in 18 months. Valuer came today, asked what had been done since last time (this is for same lender) and we could add air conditioning, further painting, more reno to the kitchen, new appliances, bathroom and laundry reno, plus outside work. So will wait and see shortly. Let you know. Anna
Thank you Anna, I hope my valuer asks me the same question. I guess the formula, if any, stays with the individual appraising the property. Thanks again, Geoff.
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