Hi, I am organizing finance for a Duplex to be built in NSW regional area, total costs (land & build) under 1M. “The lender’s Valuer requires $1500 + GST to complete long form val report.” Is this price TOO EXPENSIVE for providing valuation report on such small project?
The work required to prepare a valuation for construction (not a competed building) is not the same as a valuation for an existing single dwelling house.
Short form is when they do a full inspection or for construction they inspect the land and look at the plans, build contract and build specifications and then come up with a valuation amount. Long form means they are assessing more on a commercial basis. Meaning the report will have 4 (I think its 4) different methods of valuation (as opposed to just one method and one figure like in the short form). They get right into different methodologies which can come in quite apart from each other. The lender will take the lowest one! and take the GST off as well. $1500 is about right. The other main difference for the lenders is they want the property valued in one line not as 2 separate dwellings even if strata or sub-division is part of the process.
I concur with Marty. For that type of valuation, $1500 is about right. It is a little unusual for a long form valuation be done, but given it's a duplex, it's not unusual. This type of valuation may run between 30 - 60 pages, whereas a short form val might only be 5. It will likely take several days longer to complete as well, a lot of effort goes into these types of valuations.
The last commercial valuation I obtained (bank panel valuation) was $5,500. So $1,500 looks pretty cheap. I looked once at switching banks but spending $50k on valuation was a deal breaker. :-(
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