fxdaemonParticipant@fxdaemonJoin Date: 2013Post Count: 114
Looking for some advice based on practical experience and/or knowledge of what bank/valuer look for
to determine the new valuation of a renovation?
Any good recommendations of good books on:
– how to best maximise the returns on reno, both re-valuation and rent
– how to pre-determine returnon reno (valuation and rent) before commencing
– what reno works may not increase property value and may even risk reducing it
If anyone has real first hand experience of above, appreciate sharing your wisdom.
FXDCorey BattParticipant@cjaysaJoin Date: 2012Post Count: 1,010
The banks just order an independent valuer to go out and value the property as if it were post renovation – so it doesn’t come to them assessing each of the individual items you’re paying for in the renovation etc – but the overall picture. The best thing to do is to compare it against recent sales in the market of renovated properties and then compare against renovation costs to see what you can do for the best bang for buck. Generally painting, kitchens and bathrooms provide the largest uplift in values, but the latter two generally are the highest cost improvements too.fxdaemonParticipant@fxdaemonJoin Date: 2013Post Count: 114
Thank you sir.Ethan TimorParticipant@ethantimorJoin Date: 2016Post Count: 282
I always think of the valuer as a potential buyer so both the reno and the staging are done as if for sale, so pretty much same rules as sale apply (kitchen, bathrooms, overall street appeal, features buyers like in this area etc)
Then the valuer comes and I walk with him/her, explain what was done, mention the high quality finishes etc.
Usually the valuations come back pretty much as expected (as per my own market research and target price, all done before reno began).
Another thing I usually do is ask a property manager to provide their rental appraisal in writing (I let them know what it’s for and also offer to pay for their time if not planning to have them as PM or if they are not already the PM for this property, all in order to not abuse their service). Then, I submit that report with the order of the valuation, so the valuer knows upfront the rental appraisal, which helps set the property’s price in their mind, even before they leave the office 😉Jamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
Keep the house uncluttered and well presented for when the valuer arrives.
If you’ve got strong, recent, comparable sales – have those available to show the valuer.
In terms of best bang for your buck – usually painting/flooring is the cheapest value add.