Hi all,
How can I estimate the probable “new Value” (Bank valuer) of a property after renovations? For example, say I have a property currently valued at about 85K (so as it stands right now at this point in time this is the value) and then I spend $5000 on renovating. How can i estimate a reasonable/probable “new value” after the renovations?Or is it just luck of the draw? I know it must depend on what renovations I do. But how do you say, “if I do this renovation I could expect this sort of raise in value”? Any ideas? [
]Thanks
One idea might be to run your plans past a reliable REA who can tell you the market value in his eyes. This is not a valuation but will give you a feel.
You can ask a valuer to take a look at the property and give you his opinion – this will probably cost you a few hundred dollars.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
don’t 4get the bank valuation will most likely be conservative !
Most R/E Agents also offer free valuations ( hoping to get your property to sell ) contact 2-3 of these also and get the valuations done after you’ve finished reno’s, this gives you an idea also and something to show the bank/broker.
Look at Properties of the same ‘type’ as yours in your suburb, what values do they have ? Remembering that a $1000 000 house in a $1000 000 suburb will be valued better than if it’s in a $100 000 suburb ( don’t overcapitilise )
Value add ( cheap additions other than the $5k )such as painting, gardens etc
REDWING
“The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”
Redwing,
I don’t know if that is always true about bank valuations or is perhaps an urban myth – maybe somewhere in between.
I cannot remember the last time a bank val didn’t match purchase price. Some banks have very sympathetic valuers and as a broker I use these where it is essential.
I am sure plenty of forumites have stories to prove me wrong but I haven’t had too much grief with valuers over the years.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
MortgageHunter,
If purchase price is say 80K and then 5K is spent on renos then you would expect re-valuation (after reno) to come in above purchase price. So if the re-valuation came in at purchase price then this would be considered conservative wouldnt it? Is this right?Perhaps. There are other factors.
Could have paid too much, the value of an area may have dropped. Bad renovation, small town with few recent sales for the valuer to compare with.
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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