All Topics / Finance / Valuation when building.

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  • Profile photo of NT RudolfNT Rudolf
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    @nt-rudolf
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    February 20, 2013 - 9:08 am

    I should start off by saying that this is my first post but have been coming to this site for a while and think it is full of valuable information.

    This may be a silly question but at which point does a valuation come into play when building.  Can a valuer look at a block and a house plan and give a basic valuation off that then you can use that figure when applying for a loan or do you need to wait until it is completed then get it valued to adjust your loan from there?

    Thanks

    Matt

    Profile photo of TheFinanceShopTheFinanceShop
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    @thefinanceshop
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    February 20, 2013 - 9:50 am

    They will value the property when you apply for a construction loan. They do this by looking at the Building Contract to see what is the included, finishes, etc. 

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
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    Profile photo of fredo_4305fredo_4305
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    @fredo_4305
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    February 20, 2013 - 10:12 am

    I thought they just take the building contract price?

    Profile photo of TheFinanceShopTheFinanceShop
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    @thefinanceshop
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    February 20, 2013 - 11:22 am

    They take the building contract price into consideration. At the end of the day they compare recent sales like any other property.

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
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    Residential and Commercial Brokerage

    Profile photo of wilko1wilko1
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    @wilko1
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    February 20, 2013 - 1:04 pm

    After council approval for the dwelling is granted, when you apply for the construction loan.

    Make sure you get the approval for the construction loan with your valuation on completion done before you make any changes to fixtures and fittings. By this i don't mean you can suddenly say your not putting in the huge wall tiles that you told the valuer you were putting in on the plans.

    Ie you might decide that paying the building company 5k for floating floorboards of a substandard quality is not worth it and you wish to do yourself. Because if you didn't include these when applying for the construction loan. the valuer will see the house as not being complete or require you to supply quotes for the new floorboards. which gets a little bit more complicated for banks then a single building contract comprising everything.

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
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    February 23, 2013 - 9:53 am

    Just be careful with your choice of lenders as you will be amazed at some of the lending nuances.

    One lender i can think of will only do a construction loan if the plans specs etc are given to them at the same time with the land application (of course they don't tell you that and will do vacant land loans) and another major lender will do a construction loan if the Building quote includes everything from blinds, to fencing landscaping etc.

    Who wants to nominate their choice of  blinds and curtains up front ……i ask you.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

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