Increase the valuation on your property by thousands

One of the key pieces of information Banks and Financial Institutions use to assess loans is the End Market Value which, as the name suggests is the value of the property once the renovation or build is completed.

One way to assess that is to add the value of the land to the “hard” cost of the construction – in other words, the amount of money it cost you, the owner.

In the case of a standard building contract, the sums are easy. They add the value of the property to the cost of the building contract.

But if, by Owner Building you can reduce the hard cost of the construction (which, lets face it is often a major point of the exercise), you can run the risk of the End Market Value being reduced as well.

In many cases, Banks won’t accept the fact that you are building your house for $400,000 but if you were to go through a builder, the same house would cost $500,000.

That’s where the role of the broker becomes extremely important. It becomes his or her job to present the information in such a way that banks can easily and quickly see the value.

A good broker will know the questions that banks will ask and answer them with market based data using information such as local property values, price per square metre and similar building quotes.