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After Renovation Value Question

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  • After Renovation Value Question

    Hey People,

    When asking a valuer to formulate an after renovation value for a project, Do they expect to see professional plans upfront for improvments or can I expect that they could give me an estimate from walking thru the property and taking details there and then of the planned improvment.

    This AVR would be to satisfy my guestimate for the project more than for extending finance.

    Appreciate experiences.



  • #2
    Hi Niall

    When I did a minor dwelling the, bank wanted a valuation on completion. In this case the valuer wanted a complete detailed plan for the building.

    I don't have much experience with renovations. I would think that if it's not for the bank then a valuer wouldn't need plans.

    I believe what you're trying to do is not spend too much - without raising the value alot (overcapitalising)?

    This AVR would be to satisfy my guestimate for the project more than for extending finance.
    Why not? If you reno of $5K could bring you a $20k equity increase - that's 20K for next pruchase.


    • #3
      Hi there,

      One of my strategies for dealing with valuers is this.
      when I finish a project I alway have a pretty good idea of what a property is worth so I set let the valuer know what value I want ,after all I am wanting to release as much equity as I can.
      If I am operating in a new area where I don't know any valuers I will get a verbal valuation to start to see where the guy is at I may do this a number of times.
      This has a number of benefits but the key one is that it lets the valuer know that if he wants my work he has to play ball with me mostly on my terms.
      Often I will fly a valuer I know in, to get the valuation I want.
      It works for me a treat.
      If I don't get the verbal valuation I want I get another valuation
      I don't bother haggling or arguing with them.
      It works for me


      • #4
        Hi Niall,

        When you are doing cosmetic renovations the valuer should give you a "future valuation" based on a conversation with him at the property.

        Like ActionMan is saying, if you are building (eg more than a renovation) you will need plans as the variables are much greater.

        Hope that helps.


        • #5
          Hey People,

          Thanks for the information.

          The only external renovations we are looking at are putting in double doors to a new deck. Also a skylight is a possibility.

          However we are looking at knocking some non load bearing walls internally to open up some pokey rooms. This internal rearranging was what I was wondering if I needed plans for the valuer or not.

          Great info, Keep it coming.



          ps, I should add these properties are being bought for the purpose of trading. structures already in place.
          Last edited by Niall; 29-08-2006, 11:25 AM.


          • #6

            The best thing I think you can do is ring your valuer and ask. You will be suprised how open valuers are. I have interviewed many valuers and they all have good knowledge of the markets they are in and will happily tell you what they will and wont do.
            eg. "I need plans" or "no, lets go to the property and I can give you a figure".

            If you don't get the answer you are looking for, ask a better question.