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Valuations for energy-efficient/passive homes

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Valuations for energy-efficient/passive homes

Posted 22 Dec '18 02:10 PM

Can anyone comment on their experiences with building an energy-efficient or passive home and getting it valued in order to secure a home loan?

Our valuation has come back a lot less than the contract cost to build. The reason being that the market doesn't (yet) really value energy-efficient upgrades like extra insulation, uPVC windows, airtightness and high-efficiency heat recovery ventilation systems...

Interested to hear how others have got on.

Cheers

RE: Valuations for energy-efficient/passive homes

Posted 07 Jan '19 01:59 PM

I have a similar situation. Need to "shop around" for your valuer and talk to them beforehand so that they are on the same page Two things here, Council Value for rates purpose vs registered valuation for bank and insurance purpose.

Council Valuation for our home (improvements) has come in a lot less that our spend. I don't really care as this means I pay less rates and do not really care what local government think my house is worth as they have no understanding of Passive house standard.

Registered Valuation- I had to spend time with the second valuer on our property to explain what the difference in cost to build our 200sqm Passive Home vs Standard NZ code. He got it and subsequently was able more realistically value our build to satisfy the Bank and for my own peace of mind for insurance company if ever the worst case scenario was to occur.

The good thing is that there are enough of these types of homes coming up in NZ now and there is a good number of people in the loop, just talk to them before hand and ask them specifically questions relating to this.

RE: Valuations for energy-efficient/passive homes

Posted 10 Jan '19 12:32 PM

Thanks ern, very helpful to hear about your experiences. Cheers

RE: Valuations for energy-efficient/passive homes

Posted 20 Mar '19 12:43 PM

Very useful information. Do you usually get valuers in your local area or can they do the valuation remotely? If so, are there any that you'd recommend?

THanks
Vanessa

RE: Valuations for energy-efficient/passive homes

Posted 19 May '19 11:23 AM

The reason for this is because builders mark up a premium for a PH.

I have just completed a PH build with me being the project manager. We imported the windows from Germany at a significantly lower cost and used NZSIPS for the main build.

My final valuation came well over the build cost.

RE: Valuations for energy-efficient/passive homes

Posted 07 Jul '19 09:53 AM

Hi akmodi, would you share this information with PHINZ please? as we need to evidence actual PH build costs. Or if you'd rather discuss offline I can be contacted at [email protected]

RE: Valuations for energy-efficient/passive homes

Posted 13 Jul '19 11:29 PM

Hi Akmodi,
Are ou able to say which window company you used and how easy was it to do it.

RE: Valuations for energy-efficient/passive homes

Posted 13 Jul '19 11:29 PM

Hi Akmodi,
Are ou able to say which window company you used and how easy was it to do it.

RE: Valuations for energy-efficient/passive homes

Posted 14 Jul '19 08:20 AM

We used Neuffer windows. Was a struggle, but got through in the end. We are located in Rotorua. Very pleased with the end result.

I understand that further windows have also been installed in NZ.


RE: Valuations for energy-efficient/passive homes

Posted 17 Aug '19 04:18 PM

Getting a valuation to secure a home loan sounds tricky. As I recall the banks use their OWN valuers and any report you bring in to tell them otherwise they may not accept. Banks do not like uncertainty so if you upspec on the build, they may not loan more because the market would not pay more for it. It's the same in the insurance industry. We have extras like central vacuum system which our insurer did not care or note it in the insurance policy because they're not 'selling' features that add to the value of the house. The Insured Sum Amount is all that matters so in an event of a complete write-off, insurers would only pay max the disclosed insured amount and you should be able to set the amount you desire. In a house fire that writes the house off, no matter what windows it has or ventillation system, they will pay you the full insurance value declared.

RE: Valuations for energy-efficient/passive homes

Posted 19 Jan '20 07:40 PM

Still incredibly valuable topic.

Ive just been preapproved for on my mortgage for 500k subject to evaluation for a new build.
We are getting a discount on the land from family so I'm not terrified, but we are spending extra on UPVC Windows, PV, CO2 HWHP etc.

RE: Valuations for energy-efficient/passive homes

Posted 21 Jan '20 06:40 AM

From my experience, I also agree that it is difficult to get valuers to reflect eco home type upgrades for the purposes of raising capital. Some of the 'upgrades' in isolation will not add a lot a value and could be considered preference (I'm a great advocate of uPVC for its thermal efficiency and durability, but an equal amount of houses buyers in NZ will not understand their benefits, think they will not be able to withstand PV and think their an uncertainty. Items like the CO2 HWHP, valuers likely wont be familiar with them nor other purchasers (there may not be a buyer, but valuation considers a 'willing seller and and willing buyer'.
My advise, would be to provide the valuer as much information as possible to very briefly explain the benefits and running cost savings.

RE: Valuations for energy-efficient/passive homes

Posted 21 Jan '20 10:00 AM

Yeah, I've asked my bank for their preferred valueation guys, so we can have a conversation before final spec and could avoid these issues. Although a quick look on Trademe makes me comfortable, nothing with our sized land and house is anywhere near our budget as it is for retail.
I've got a great 5kw solar quote, and I'm on the list to crowdfund a new "enthalpy" 10kw battery (first 100 get it for 4k ish), CO2 heat pump, and higher insulation specs than standard, along with Plygem UPVC windows at 2.5 times the code for R-Value, and then honeycomb blinds to top it all off. It will be a VERY cheap but conventional house to run, If I made the shortlist for the battery, I'm guessing three quarters off our annual power bill in raw terms,

RE: Valuations for energy-efficient/passive homes

Posted 21 Jan '20 11:15 AM

m1013828 : we would appreciate a reply as soon as you get a response from the bank's preferred valuer. From my experience such responses have been negative because the valuers only work around the guidelines of the insurers. Just because your house uses non-standard materials does not mean your house is worth more. I had a similar argument with my insurer on our home and unfortunately, they would only insure based on an agreed sum value. But the problem I had was they would not be willing to match like for like materials if say the house burnt down. This is what got a lot of the insurers in trouble over the Chch earthquake. The new code specified stronger foundations but the insurers did not factor that cost in causing some insurers to go bankrupt. So instead, insurers have moved over to an agreed pricing scheme and if in 10 or 30 years time when the building standards have changed such as better materials used; the insurance company will pay ONLY up to the agreed value. As the home owner adjusted for more coverage (a higher agreed amount), the premiums go up.

Personally, I do not believe in insuring for a FULL value however, this is not the option of the person borrowing on mortgage. The banks are in a situation that they only care about getting their cost back. If they lend $ on a house that costs so much more to build than a 'standard construction' house, they know that the insurers won't pay any more money on that loan. Hence why there are no incentives to build above standard construction in NZ. A) the people won't pay for it and B) the insurers won't pay for it, and therefore C) the banks won't care to lend much on it.

RE: Valuations for energy-efficient/passive homes

Posted 22 Jan '20 06:20 PM

I agree with your comments about the non standard materials not making the house more valuable (especially as security for the bank), but as time passes and people become more aware of the benefits of these 'non-standard' methods and materials, they become more popular, reducing the cost, insurers less concerned, more evidence available to PROVE the reduced running costs, and then people will value the differences. If a $ figure can be put against cost savings, it can be capitalised and hence becoming the new improved value.

The bigger challenge is that all these 'non-standard' building materials and methods are more expensive. Here in NZ the challenge is for these to become more main stream and economical. I am going to start a forum topic on obtaining economically priced materials that I would love you all to contribute to.

Keep us all posted with your thoughts and experiences.

RE: Valuations for energy-efficient/passive homes

Posted 22 Jan '20 06:42 PM

Hi,

In my experience the bank valuers will value it at the standard build pricing for the "pre build" valuation.

After the build with the "better" materials the house is valued much higher...see my comments above.

The main issue here becomes: how to arr

RE: Valuations for energy-efficient/passive homes

Posted 22 Jan '20 06:44 PM

Sorry about the glitch.

The main issue becomes: how to arrange for the difference in building costs.

Yes, the much higher costs for better building materials in NZ needs to be tackled. I resorted to imports on my own especially for windows and almost the complete interiors.

RE: Valuations for energy-efficient/passive homes

Posted 22 Jan '20 07:11 PM

How did you get on with importing? Do you have to pay GST and an import duty? Was it worth it?

RE: Valuations for energy-efficient/passive homes

Posted 22 Jan '20 07:26 PM

no reply from the bank to put me in touch with valuers yet. we've opted to go local, after exploring Mitten Vinyl Cladding, we decided to use the local distributors for both the cladding and ply gem. For all our windows and external doors it comes to 23.5k exc GST, which I thought was pretty sharp for uPVC with a high R Value by NZ Standards, and insect screens as standard.

RE: Valuations for energy-efficient/passive homes

Posted 22 Jan '20 08:53 PM

Yes, we had to pay GST and import duty. Was very worthwhile: we were after triple glazed uPVC with Aluminium on the outside.
Significantly 40-50% cheaper than locally sourced windows: who import them anyway from Europe

RE: Valuations for energy-efficient/passive homes

Posted 22 Jan '20 09:00 PM

dang, ballpark cost?, thats gotta have a sweet R Value.

RE: Valuations for energy-efficient/passive homes

Posted 22 Jan '20 09:57 PM

3k per SQM....Inc building on soft soil, 3 sets of large stacking doors, aluminium entry door with glass sidelights, SIP panels build, full laminate flooring, large farmhouse kitchen with granite worktops etc.

So, a pretty well spec house. To do this at this cost, I had to be the project manager ☹️...but can be done..... finally valued at 4k per sqm

RE: Valuations for energy-efficient/passive homes

Posted 22 Jan '20 09:59 PM

Was assessed by PHPP and would have been certifiable for Passive house. Just didn't think that the extra cost was worth it as we were going to live in it anyway.

The Sip panels were R6.7 for walls and R 9 for the roof

RE: Valuations for energy-efficient/passive homes

Posted 22 Jan '20 10:24 PM

I just meant the windows! im aiming much lower 2k per square meter to build.

RE: Valuations for energy-efficient/passive homes

Posted 22 Jan '20 10:28 PM

You are most welcome to ask Neuffer windows for a quote...they will come back with a price in 48 hours. 15% gst and 5% Customs duty on top will need to be added.
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