Hello everyone,
I am planning on doing a renovation and want to know wether valuers have a "cheat sheet" of sorts that they go off when revaluing a home,ie: Do valuers go into a home and say "Right, theyve put a pool in, standard value to add is 30k" or
"new car port – +15k"or is it a case by case basis?
just want to know so i can make informed decisions on what to put priority on
thanks everyone
Ben
A val is very subjective and outcomes variable depending upon instructions. They are not shaman (REA’s) nor are they builders or spin doctors, they are there to determine ‘value’.
It is not simply the sum of what was paid & the cost of the works but a comparison of similar properties, what they have achieved in the market and whether the property is better or worse.
1. Budget all your renovation costs closely
2. Work out how much your house will sell for after completion (completion worth – existing worth = value added)
3. Reduce renovation costs if they’re more than value added
4. Target renovations to suit your suburb and its demographics
5. Do quality renovation workScott and alyna, thank you for your replies
Ben
I'd also add, chat to a local real estate agent to get their idea as to what would add most value to the property – they are at the forefront and see many properties so would have a better idea than the architect/designer/builder/tiler etc (each has their own cart to push).
Once you know what will sell, then tailor your refurb to be the most cost effective.
That suits me i have some real estate agents that i get along with here, thanks Scott
Most real estate agents are happy to provide you with a list of past sales data in the area.
Get this list, type it all into Excel (as they will usually provide it in pdf format), do some charts comparing actual sale price to fields like year built, extras added, bedrooms, bathrooms, location etc and determine the sales trends.
Go visit some of the properties that have sold for higher prices and ask if you can have a look through them.
Build up your picture before starting work.
Sparkys wrote:Most real estate agents are happy to provide you with a list of past sales data in the area.If I had a crystal ball, I would also provide future sales data as well.
IP Freely wrote:Sparkys wrote:Most real estate agents are happy to provide you with a list of past sales data in the area.If I had a crystal ball, I would also provide future sales data as well.
Heh, if you could do that I'd have to wonder if you were a directing member of the RBA!
Hi sometimes banks do a desktop valuation so may not even come out. It's up to you to provide why it's worth mare than the average.
As others said, speak to RE Agents to see what's in demand from a sell and a rental point of view.
Work out what you intend to replace, fix, etc.I only do reno's where equity has increased 3-1. That is if I spend $1 the equity has to increase $3. Plus I eed increased rent.
Otherwise what's the point?Last reno cost $15K. Increased equity $60K. But a LOT of sweat equity in there.
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