Valuation dispute on duplex construction loan

I think you may have a case of the valuer thinking the deal doesn’t stack up ie land value + construction cost is more than the valuer thinks the end value will be.

Therefore he / she only has one option and that is to decraese what they think is fair build contract value as the land value is pretty fixed. They could have done the other way and decreased the land value but probably harder for them to justify.

 

I had the same issue 12 months ago, is it to be strata titled/subdivided at completion into 2 seperate propertys ?or left as dual occupancy. If so you may find that the bank has instructed the valuer to value it as only 1 property, the bank would only value them again at completion after the separate titles had been produced and thats where the problem was in my case. Your situation may be different if it is dual occupancy.

 

Hi experts,

I am also about to embark on a duplex townhouses development but
unsure who may be in the best capacity to provide development end valuations.

Will it just be any valuer or do I need to engage specialised development valuer?

Can any of you recommend someone in Melbourne for such a little project
for the purpose of financing and feasibility study purpose?

Thanks,
FXD

 

Thanks Rolf,

I have actually spoken to my finance broker before but he suggested I obtain
independent valuation. That led me to think there may be specialist valuer for
such valuation other than lenders.

For this development I plan to source from commercial lender. Does it change the way project valuation is done and who maybe the best party to do it?

Thanks,
FXD

 

Will be costly to do these valuations. Best to discuss further with your broker as to why.

 

Because my broker says I can't meet servicing if going with resi lenders and suggests that I may
need to go down the commercial lender path. :-(

Rgds,
FXD