Venture Into Valuation: Off-The-Plan Units

The surge in the popularity of off-the-plan property purchases with investors across the eastern seaboard capital cities, has given rise to the number of valuation requests we get for this type of property.

Can a valuation report be generated for an off-the-plan unit that is yet to be completed?

In short, we can complete either a valuation report or desktop assessment for an off-the-plan property before it is fully completed, provided we get permission from either;

1. The financial institution (bank) to generate a report without an inspection or;
2.  The builder or developer agrees to provide access to the property to conduct an onsite inspection.  

However we highly recommend that an inspection be conducted closer to completion, as it eliminates assumptions and allow us to provide a more accurate report. We can better assess factors that contribute to the property’s value, for example if the unit has views.

Once we do gain access to the property, we will also require a full copy of the contract of sale to complete our valuation report which includes:

1. Draft strata plan (there can be multiple Strata Plans within a complex)
2. Schedule of finishes
3. Floor plan
4. Front page of contract (preferably signed and dated, allowing us to establish the contract date and identify extraneous details relating to sale inclusions, incentives and rebates)
5. Background information on the development (including stages in development and total amount of units)
6. Any additional factors (for example a commercial/retail component to the development)
7. An anticipated completion date for the complex

This information is based on the most common off-the-unit-plan scenarios we come across. There are other factors that may prevent a valuation report from being generated, please contact us for further information about off-the-plan unit valuation services.