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Valuation

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  • 31-05-2016 12:20am
    #1
    Irish_rat
    Registered Users Posts: 2,555 ✭✭✭


    My place is due to be finished in a matter of weeks. (semi-d off the plans)

    The valuation and house insurance seems to be a very grey area. From what I've heard its possible to get it all this done a week or 2 before the completion notice comes in.

    Anyone have any experience of this?


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    #2
    drunkmonkey
    Registered Users Posts: 28,127 ✭✭✭✭drunkmonkey


    You want the Value as high as possible versus your loan. LTV matters for interest rate. You bank will probably have someone locally that does it on their behalf.


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    #3
    Water John
    Registered Users Posts: 21,211 ✭✭✭✭Water John


    The bank will have a list of valuers, choose one.
    All the bank wants to know is that the value of the property covers the loan on it.
    Yeah insure as early as possible. Ready to kick in on completion.


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    #4
    Carawaystick
    Registered Users Posts: 8,779 ✭✭✭Carawaystick


    The Valuation for insurance is the cost to rebuild the house in a disaster, not the price to be paid for the house.
    You'll still have a plot of land with zoning/planning permission even if your house burns down in the worst case
    This number is usually calculated by the area of the house.


    The valuation for the mortgage is done by an outside valuer.

    If you use the same number for both, you'll pay a higher insurance premium and the insurance co won't pay out more than the repair value.


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    #5
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    Carawaystick wrote: »
    The Valuation for insurance is the cost to rebuild the house in a disaster, not the price to be paid for the house.
    You'll still have a plot of land with zoning/planning permission even if your house burns down in the worst case
    This number is usually calculated by the area of the house.


    The valuation for the mortgage is done by an outside valuer.

    If you use the same number for both, you'll pay a higher insurance premium and the insurance co won't pay out more than the repair value.

    A site can become contaminated and it might be more economical to buy a house at market value in lieu of a clean up and re-build. A house should be insured for the higher of market value or re-build.


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    #6
    Irish_rat
    Registered Users Posts: 2,555 ✭✭✭Irish_rat


    Did anyone else have a current market value problem on new builds on Section 11? I have to get the valuation report updated when the property is fully completed which is mad.


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    #7
    Water John
    Registered Users Posts: 21,211 ✭✭✭✭Water John


    If you think about it, the plans only say what is proposed to be built. The Bank/Valuer must also know that what ends up being built is to spec and the work has been done correctly. Otherwise the house will have a lower resale value if its not built properly and as per planning permission.


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    #8
    davo10
    Closed Accounts Posts: 6,926 ✭✭✭davo10


    4ensic15 wrote: »
    A site can become contaminated and it might be more economical to buy a house at market value in lieu of a clean up and re-build. A house should be insured for the higher of market value or re-build.

    You can insure the house for as much as you like, but the insurance company will only pay out the rebuild cost, not the market value.


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    #9
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    davo10 wrote: »
    You can insure the house for as much as you like, but the insurance company will only pay out the rebuild cost, not the market value.

    If the rebuild costs is greater than market value they can pay market value. In some cases decontaminating a site and re-building are above market value. Rebuild costs quoted do not allow for decontamination. they only allow for site clearance and rebuilding. I know a woman who had a contamination problem. The insurance company wrote a cheque for the amount insured which was less than the market value. With the money she got she could neither buy another house or repair her own house.


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