31 – The role of valuations in property development

Getting your valuations right is very important for securing acquisition funding, and exceptionally important when you apply for construction funding. The role of the valuer is an interesting one, as they are usually appointed by the lender to review your project to see if the values stack up, but they work closely with you on sourcing a lot of the reports and documents they need to complete their report. So I speak with leading valuer David Way from Knight Frank Valuations. I enjoyed speaking with David and the discussion really helped me better understand the role they play. We talk about how valuers approach a valuation, how to best work with a valuer and what to look out for in a valuation report. Property Development Training If you are interested in learning the fundamentals of property development, in your own time and at your own pace, then be sure to head over to www.propertydevelopertraining.com and take a look. I take you step by step through the development process so you know exactly what is needed to find a site, run a feasibility and complete a small scale property development, be that a duplex or 3 or 4 unit site. The training includes a bonus program called Taking It To The Next Level for people who may want to go into developing full-time, along with another bonus course called Raising Capital which covers how to raise money for your projects. So head over to propertydevelopertraining.com and take a look... I would love to see you on the inside... Property Developer Quiz Keen to find out how ready you might be to become a developer? Then take the Property Developer Quiz (https://www.propertydevelopertraining.com/quiz) and get a sense of where you are at… Become a Million Dollar Property Developer Grab my book Become a Million Dollar Property Developer about my journey into property development. This book is ideal for anyone who intends to get into small-scale property development and wants an insider’s guide to successfully obtaining wealth, fulfilment, and glory. In this book, Justin will share how he succeeded in delivering a 20-townhouse project on his first property development project and what he learned along the way. Many people have a dream of becoming a property developer. They aspire to build properties, grow portfolios, and amass great wealth. However, many people often struggle with making the leap into property development. This book has the answers for how you can make the leap into property development. Grab your copy now. Social Connection Property Developer Podcast Facebook – https://www.facebook.com/propertydeveloperpodcastProperty Developer Podcast Instagram – https://www.instagram.com/property_developer_podcast/Property Developer Podcast LinkedIn – https://www.linkedin.com/company/property-developer-podcast Tips for real estate developers I took away these key points: 1. Try to develop a good relationship with a quality valuer Having a good valuer among your team of consultants can really help you fine tune your feasibility or strengthen your loan application. You can speak with them about when to start the valuation process, key issues or challenges to address, and what they can help with. This can make a big difference to a lender looking favourably upon your application and how it is assessed, which will help things move along as smoothly as possible. But it is good to remember that the valuation report for a lending application is commissioned by the lender, and the valuer is really appointed by them to prepare an independent valuation report, not a glossy document that makes you look good. 2. Keep all your latest reports and information in one place to provide to the valuer The list of documents the valuers need is often really long, so I try and keep all the final reports or key documents that are prepared for me in a Dropbox folder, so I don’t have to go digging around for them when they are needed.