im developing the site and will start selling in 6 months y
I am not saying that the valuer is right, they may well be wrong but since this appears to be a development site.......
You do realise that the valuer must disregard any development potential in the property?
Many a time I have valued a property that has development potential way below what it has sold for or when doing a refinance valuation what it would sell for.
I insert the something along the line of the following in the refinance valuations.
"The property offers good development potential however in accordance with standing instructions I have ignored this potential and valued the property as a single dwelling site. There is a high probability that if offered for sale the property could achieve a sale price significantly above this valuation figure reflective of the development potentiial".
Valuing a property $100k above contract price when the property has been on and off the market for a while (good exposure to the market) unless there is a long settlement in a rising market or a patently anxious vendor is seen by many valuers as just sheer suicide if something goes wrong.
I have done iit in the past but would be hesitant in the current market.
For example today I inspected a proeperty that has just sold for $315k. I looked at my sales evidence before inspecting. The sales evidence said $330k to me and that is what I would have valued it at had it been a refinace valuation. I talked to the agent. He had appraised it at $320-$340k, thinking it was worth $330k apparently.
He could not get any interest in the property above the sale figure despite good exposure.
The market its not strong, relatively steady but not strong. The market has spoken. The sale price is well supported by market sales evidence. The market is not perfect and neither am I and I do not make the market, I merely interpret it.
Given that a lender will only use the lower of valuation or purchase price think I will increase any risk by saying the market is wrong and I am right and value it $15k higher?