When renovating a house (or unit) or doing home extensions, it’s important to know there’s a ceiling price in every geographical area. While renovating a house can be profitable, it’s not without risks. This is where a valuer with expert local knowledge can help you minimise your risk and maximise your profit.
Remove the guesswork with an independent property valuation before you renovate.
When renovating an house, unit or townhouse an independent property valuation is a valuable tool. By engaging a Certified Practising Valuer to complete an ‘on completion’ valuation, our clients know how much the property will be worth once renovations are completed. This is an essential part of the due diligence process before undertaking a renovation. Just because you are spending $300,000 to renovate, doesn’t mean the property will increase in value by $300,000. It depends on the suburb and the prices being reached in that suburb. If the top price is $450,000 the ‘on completion’ value may not be much more than this, regardless of how much you spend.
What does the valuer need to complete an ‘on completion’ valuation?
In order to conduct an ‘on completion’ valuation, the valuer will require a copy of the new building plans for the finished product as well as a list of the specifications (e.g. fixtures and fittings i.e. taps, sink, appliances etc.) and costings to complete.
Many clients request a current valuation (what the property is worth before the renovations) and an ‘on completion’ valuation prior to starting their renovations. By doing both at the same time we can complete both valuations in one report at a discounted fee. It’s important to note that the ‘on completion’ valuation will advise what the property is worth now, in today’s market and not the value at the time of completion (in six or 12 months time). Valuers are not permitted to forecast the movement in the property market nor estimate the value at the time of completion.
Best money I have spent all year. Look forward to our next and will recommend you to all my friends and neighbours. Thank you again for your professionalism and fantastic customer service skills.–Sara Clarke, Everton Hills
Need more information about renovating a house? At WBP Property Group we have just released our new book – Real Estate for Beginners
If you are looking to buy or sell a property or need a bank loan to purchase a property our book ‘Real Estate for Beginners – A property valuer’s inside tips for pricing, buying and adding value to property for first home buyers’ is a valuable resource. Click the link for more information on how this beginner’s guide to property can give you the inside information you need to start a profitable property portfolio.
Ordering a valuation is the quickest and easiest way to know the property’s value before you buy or sell, but if you have the time, this book will give you the resources to start the process yourself.
This book will show you:
- how to find and negotiate the right property
- how to add value to a property for sale or valuation
- how to get every cent from a property (and the best valuation)
- how to get the inside tips to the bank’s requirements so you can borrow more and maximise your property portfolio