Determining your home's value

Determining the final value of your home

When you are building your own home, valuing your home is an important part of securing your home loan. This can make organising finance a complex matter, as the lender must be able to determine the final value of your property once all construction is finished. To arrange a valuation, the lender will require the following from you:

• If you are building as an owner builder, you will need to supply a fully completed "Owner Builder Estimate of Construction Costs" form (you can obtain one of these at any St.George Home Loan Centre or branch), PLUS your written schedule of progress payments. This schedule should show how much money you will need as you build and when. It should also detail the works you intend completing at each stage. This will assist the valuer in assessing the projected cash flow. Your lender will review this schedule, with the progress payments subject to negotiation.

  OR

• If you are using a contract builder, you will need to supply final tenders and itemised quotes from your builder.

Other things you will need to supply include:

• Council approved plans and specifications, along with any conditions of approval specified by the local council.
• Written details of any work that is to be carried out by you as owner-builder or family, friends and subcontractors. This should include all trades such as plumbing, electrical work, bricklaying, carpentry, roof tiling, wall and floor tiling, gas fitting, painting and concreting. Make sure you highlight the works to be carried out at no cost, and details any works to be completed at a discounted rate by you, your family or friends. You will also need to supply a complete costing of the works to be subcontracted to qualified tradesmen (please include copies of written quotes).

If you are building the house yourself, the lender will also require:

• Written details of where you intend to purchase the building materials, the credit terms available and copies of any trade labour cost and quotes already arranged
• Evidence of your savings you will be using to fund construction to the stage when the lender will release the loan funds
• Your current Owner Builders’ permit
• Evidence of current All Risks Insurance

Avoid payments in full until you are satisfied the job is complete to the agreed stage. If the work is unsatisfactory or incomplete, you may have trouble getting your money back.