Surveyors - valuations query
Discussion
How on earth do you value a property as follows?
End of a row of 4 cottages on a road containing nothing else but bungalows either side.
Only 5 houses sold in the past 8 years on that road (this particular one being 2 of those)
Bought for 128k as a two bed in 2009.
Extended to add two further bedrooms, a garage and a downstairs loo and completely rehash the front of the house from a bland pebbledashed home to something more aesthetically pleasing.
Currently undergoing an extension at the rear to make a 6m x 6m lounge, half way there, needs say £5k to get it 'usable' £5k more to finish to high standard.
So downsides.
How do you value it? Do you say, oh, it's worth say £175k finished, but needs £10k spent on it, so it's worth £165k?
Just a vague outline of a thought process would be appreciated. Need to renew my mortgage as the fixed deal ends, but absolutely NO idea on what it's worth now, and what LTV bracket I'll fall into.
If you spend 40k you hope to get it back in added value, but I know that's not the case in the current market.
There's nothing like it nearby. There's a generic 3 bed 1970s semi round the corner up for 150k and a 1 bed bungalow 150m away for £174k, a 2 bed bungalow 5 doors down sold last year for 142k (small garden)
Any thoughts?
End of a row of 4 cottages on a road containing nothing else but bungalows either side.
Only 5 houses sold in the past 8 years on that road (this particular one being 2 of those)
Bought for 128k as a two bed in 2009.
Extended to add two further bedrooms, a garage and a downstairs loo and completely rehash the front of the house from a bland pebbledashed home to something more aesthetically pleasing.
Currently undergoing an extension at the rear to make a 6m x 6m lounge, half way there, needs say £5k to get it 'usable' £5k more to finish to high standard.
So downsides.
- It's a building site at the rear, making the back currently look quite unnatractive
- It requires say £10k to finish it to a high standard (one room, the rest is v.good)
- Has had to date, circa £40,000 spent on it.
- Looks much better (always gets comments on how nice it looks)
How do you value it? Do you say, oh, it's worth say £175k finished, but needs £10k spent on it, so it's worth £165k?
Just a vague outline of a thought process would be appreciated. Need to renew my mortgage as the fixed deal ends, but absolutely NO idea on what it's worth now, and what LTV bracket I'll fall into.
If you spend 40k you hope to get it back in added value, but I know that's not the case in the current market.
There's nothing like it nearby. There's a generic 3 bed 1970s semi round the corner up for 150k and a 1 bed bungalow 150m away for £174k, a 2 bed bungalow 5 doors down sold last year for 142k (small garden)
Any thoughts?
I've got the survey on my desk for the property that we're buying...
We had an offer accepted at £185k and they have instructed us/the mortgage company that the reinstatement cost of the property is £205k.
My (limited) understanding is that with a certain amount of work (mainly decorating) the property could be worth £205k but at the moment it's value is £185k as that is the market rate for a property in this type of condition.
So in your case you may want to try an argue that the value of your property will be higher (maybe supported by estate agents valuations) once the work has been finished.
I get the impression that the surveyors get the valuations off Zoopla
We had an offer accepted at £185k and they have instructed us/the mortgage company that the reinstatement cost of the property is £205k.
My (limited) understanding is that with a certain amount of work (mainly decorating) the property could be worth £205k but at the moment it's value is £185k as that is the market rate for a property in this type of condition.
So in your case you may want to try an argue that the value of your property will be higher (maybe supported by estate agents valuations) once the work has been finished.
I get the impression that the surveyors get the valuations off Zoopla
pmanson said:
I've got the survey on my desk for the property that we're buying...
We had an offer accepted at £185k and they have instructed us/the mortgage company that the reinstatement cost of the property is £205k.
My (limited) understanding is that with a certain amount of work (mainly decorating) the property could be worth £205k but at the moment it's value is £185k as that is the market rate for a property in this type of condition.
So in your case you may want to try an argue that the value of your property will be higher (maybe supported by estate agents valuations) once the work has been finished.
I get the impression that the surveyors get the valuations off Zoopla
My understanding is that the reinstatement value of the property is what it would cost you to completely rebuild it (i.e if it burnt down or something). This is totally different to what the houses market value is.We had an offer accepted at £185k and they have instructed us/the mortgage company that the reinstatement cost of the property is £205k.
My (limited) understanding is that with a certain amount of work (mainly decorating) the property could be worth £205k but at the moment it's value is £185k as that is the market rate for a property in this type of condition.
So in your case you may want to try an argue that the value of your property will be higher (maybe supported by estate agents valuations) once the work has been finished.
I get the impression that the surveyors get the valuations off Zoopla
Market Value as on the day of inspection.
Assuming it's a valuer from one of the big groups, he'll have details of sold property, and more usefully sold property valued by his firm = more info.
Lack of local comparables will not help him (but possibly will help you). Normal instructions from lenders is that any comparables are no older than 6 months old.
I'd be inclined to look at value at end, + cost to finish. I'd also be adding on to the cost an element of 'make it worthwhile' though as other a potential purchaser would buy the one already finished elsewhere.
Assuming it's a valuer from one of the big groups, he'll have details of sold property, and more usefully sold property valued by his firm = more info.
Lack of local comparables will not help him (but possibly will help you). Normal instructions from lenders is that any comparables are no older than 6 months old.
I'd be inclined to look at value at end, + cost to finish. I'd also be adding on to the cost an element of 'make it worthwhile' though as other a potential purchaser would buy the one already finished elsewhere.
surveyor said:
Market Value as on the day of inspection.
Assuming it's a valuer from one of the big groups, he'll have details of sold property, and more usefully sold property valued by his firm = more info.
Lack of local comparables will not help him (but possibly will help you). Normal instructions from lenders is that any comparables are no older than 6 months old.
I'd be inclined to look at value at end, + cost to finish. I'd also be adding on to the cost an element of 'make it worthwhile' though as other a potential purchaser would buy the one already finished elsewhere.
Superb guidance thank you.Assuming it's a valuer from one of the big groups, he'll have details of sold property, and more usefully sold property valued by his firm = more info.
Lack of local comparables will not help him (but possibly will help you). Normal instructions from lenders is that any comparables are no older than 6 months old.
I'd be inclined to look at value at end, + cost to finish. I'd also be adding on to the cost an element of 'make it worthwhile' though as other a potential purchaser would buy the one already finished elsewhere.
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