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Valuation question two bedder vs three bedder

Discussion in 'Property Finance' started by wylie, 17th Mar, 2016.

  1. wylie

    wylie Moderator Staff Member

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    I'm keen to know from either the brokers or better still, a valuer about a house which was three bedrooms, but one bedroom has been turned into a dining room (not by us). This room opens to a deck.

    We want this house to value up enough to get equity out and we can do one or both of the following to allow a valuer to see that this could be a three bedroom house once again.

    1. Put the door back on to allow the dining room to be called once again a "bedroom". This would mean access to the deck is via the laundry and from outside stairs (only four stairs). There are windows from the kitchen to the deck, but no doorway.

    2. Cut a new doorway from a vestibule off the kitchen to allow access to the deck from inside the house.

    If we do put a door on the dining room, would a valuer think "three bedrooms"? Would he likely think "hmmmm... have to go outside to reach the deck".

    If we do put the door back on, do we also need to cut a new door to the deck? The tenant will likely want the door removed after the bank valuation as he doesn't need a third bedroom, so I'd like to avoid cutting a new door just for the bank valuer's benefit.

    But if it is necessary to cut the door to convince a bank valuer that the third bedroom really "is" a bedroom, we would be silly not to do so (especially for the next tenant who may want a third bedroom).

    Another idea... if we ensure that we tell the valuer (through our broker) that this always was three bedrooms, and it clearly is easy to make it three bedrooms again, would he value it as three bedder, or would he value only what is there now, ie. no door, therefore NOT a bedroom?

    Thoughts?
     
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    IMO for maximum value you need to have its as 3brm all accessible from inside the house.

    See if you can cut a doorway to the deck using a kitchen window.
     
  3. Azazel

    Azazel Well-Known Member

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    They might not even notice?
    Would be good to know the criteria obviously before you go ahead with changes.
     
  4. wylie

    wylie Moderator Staff Member

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    That can't be done without altering the kitchen and it is not worth doing that for this exercise. But just off the kitchen is a landing where we could cut a new door to the deck.
     
  5. wylie

    wylie Moderator Staff Member

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    I think a valuer will count the bedrooms for sure, but if we tell him "this dining room is actually the third bedroom if we just put the door back on" he may value as a three bedder. It is worth money having the extra bedroom.

    He "may" not be too worried that access to the deck is through that bedroom/dining room or he may notice and downgrade the value for that reason. We could point out how easy it would be to cut a new door if a tenant ever really wants the third bedroom.

    My preference would be to have him accept how easy it is to make it a three bedder, and for him to value it as a three bedder, without doing anything.
     
  6. Azazel

    Azazel Well-Known Member

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    That would be ideal.
    But they might be bound to note it how it's currently configured.
    Maybe stick a bed in there?
     
  7. wylie

    wylie Moderator Staff Member

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    That is genius. It could work. "What the eye don't see, the chef gets away with" (Fawlty Towers has a reference for every situation) :D

    What do the brokers think about this idea? Will it show a valuer that it is a bedroom?
     
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  8. Bran

    Bran Well-Known Member

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    I like the idea of a kitchen opening to a deck though.
     
  9. Azazel

    Azazel Well-Known Member

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    Yeah, just set it up like a teenagers bedroom with posters and all. Maybe some faux pot smell, and an actual teenager, they won't want to hang around in there ;)
     
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  10. wylie

    wylie Moderator Staff Member

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    Absolutely. This is what we would do when the kitchen is updated, but that is an expense that we don't need now. I don't understand why the owner didn't do it when they put in the kitchen o_O.

    The new door could be cut just off the kitchen, so that is the next best thing. Again, an expense not needed for this tenant but would benefit any future tenant who decides they need a third bedroom more than a separate dining room.

    For now, I just want a valuer to value it as a three bedder.
     
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  11. wylie

    wylie Moderator Staff Member

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    Keen to hear from any of the brokers about this thread. Whether we should re-hang the door, dress the room with a bed or just ensure the valuer knows it was (and can easily be returned to) a three bedder?
     
  12. Sharpy

    Sharpy Member

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    Would love to know what the outcome of this was?
     
  13. wylie

    wylie Moderator Staff Member

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    The bank offered a desktop valuation that meant we didn't need to make any changes.

    But when current tenant leaves I think it would be good to make the small change to allow this to be a three bedder again as an option for the next tenant.
     
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  14. Sonamic

    Sonamic Well-Known Member

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    Desktop Val would be heaps easier. Would it show up as a three bedder from the original construction in a search? Did you buy it as a three bed? Then just add land value.
     
  15. wylie

    wylie Moderator Staff Member

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    It was advertised as a two bedder but I got excited when I saw a photo of a room that I felt sure was originally the third bedroom (which turned out to be the case). Unfortunately in turning that room into a dining room, the previous owner made that the room the only way to access the deck which was added probably at the same time. But it is easy to cut another door from the kitchen to the deck.

    I doubt there would be any plans floating around. This is a 60s house.
     
  16. neK

    neK Well-Known Member

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    My sisters place was purchased as a 2 bedder (with delayed settlement).

    Purchased for $1.1m, but unfortunately, bad advice from the broker's mentor saw it go through a full val (which came back at $1.025m due to lack of comparables) - the could have used no val @ 80% but that's another story (FWIW the broker has been good and I would still recommend them :)).

    Anyway, added two walls (to split a large dining/kitchen into a 3rd bedroom) and updated the kitchen and bathroom. Full val came back at 1.3m 8 months later.
     
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  17. tobe

    tobe Well-Known Member

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    Get some desktops done. They usually come back better than a walk thru with a valuer anyway.
    The desktop will show you/broker how many bedrooms the house 'has'.
    If it has to be a full val, ask the valuer about the door/tenants changes/dining room when they call to make a time for the walk thru. Having the main bedroom being the only one with access to the deck might be a plus. Having a dining room overlooking the garden might also be a plus. In the end 9 times out of 10 you'll get a better result with a desktop. Oops, already said that.