You've spent time and money in the early stages of your Brisbane renovation preparing designs, you've engaged the builder and signed the contract, only to find out your bank valuation for your loan has now failed. Let's find out how to avoid this dilemma and the disappointment that goes with it.
Where you build matters
When renovating a house, 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 an experienced home renovation builder along with a property valuer, with expert local knowledge, can help you minimise your risk and maximise your profit.
Remove the guesswork early
Remove the guesswork out of the equation early in the process of renovating your home. Our advice to our clients in the early stages of the renovation process is to work with us to design your renovations around your budget. We also recommend that you work with our independent property valuer.
By engaging a Certified Practising Valuer to carryout an 'on completion' valuation, our clients know how much the property will be worth after the renovations. For arguments sake let's imagine you're investing $400,000 into your renovations, this doesn't always mean that your home will increase in value by $400,000. The valuation also depends on your suburb assessment - what's happening now and what's expected to happen in the suburb in the near future. Remember if the highest priced houses in your suburb are $600,000 you'll find that the 'on completion' valuation may not be much more than this, whether or not you've spent more.
Before our Valuer can carryout an 'on completion' valuation they require the designs of the proposed home renovations, as well as a detailed list of building selections and specifications including the particulars of fittings and fixtures. Having the valuation completed at the early stages of the renovation process avoids disappointment when it's time to finance the build. Remember the appraisal isn't a forecast into the future valuation of the property in 6 or 12 months' time, it's what the property is worth now in today's market.
Different suburb, different financial outcome
Experience has shown that a custom luxury renovation may not achieve the same financial results in every suburb. Provided your aware of your local parameters before you start the process, you'll be better prepared. Knowing the limits may restrict your ability to borrow from the bank but it may also mean that you can borrow more than you expected!
We understand the value of YOUR renovation
Talk to Constructive Homes so that you can get your custom home renovation under way with the assurance that you are working with a Certified Professional Builder who understands the value of your renovations and helps you avoid being refused bank finance.
Download our FREE Guide with all the critical questions to ask before selecting your renovation builder.