How to get a great property valuation
Getting an accurate and great valuation of a property is extremely important, especially for your future investment plans. It can also affect important decisions such as when to sell and the amount of equity that you can access for investment purposes.
A property valuation is also required for the home loan application process which is used to find out the property value which acts as security against your home loan. That’s why you should seek the expertise of a qualified Valuer to help you get the best valuation possible.
However, a bank valuation does not reflect the market price, due to being more conservative and cautious and they usually provide a lower valuation in order to protect themselves.
So how do you go about getting a great valuation?
1. Research Firstly, it is vital that you do your research. This can consist of visiting various real estate agents within the suburb to look at sales of similar properties, but you should also be aware that real estate agents generally price their properties higher than what they are worth. Any sales information that you can get your hands on should be presented to your property valuer to aid your case.
2. Property Cycle Timing You should also consider the property cycle and timing of your valuation. It is not a great time to get a valuation when the property market is on a downward trend, compared to the upswing part of the cycle. The best thing to do if you can is wait until the property appreciates in value and then get a valuation.
3. Lender Application Form When completing a lender application form it should include a question asking the investor for the value of their property. This is where you are able to provide an estimation that is slightly higher in value, but don’t be too greedy. An estimation of approximately 5 – 10 per cent higher is usually acceptable.
4. Improvements and Presentation If you have an established property that you are looking to get a valuation for then doing repairs and renovation work first is always a good idea as any changes will increase the property value, thereby providing you with a better valuation. You should also keep a detailed list of these improvements and the cost of these which you can provide your valuer with. You should also consider the presentation of the property to ensure the property is clean and tidy as first impressions count and a lick of paint always helps.
5. Private Valuations You can also look at getting a private valuation if it is accepted by the lender. If accepted, the valuer should be listed in their panel and you should choose one that is closest to the property. If you are able to meet with the valuer, you can use this to your advantage to discuss the reasons why the property should receive a better valuation. If the lender uses the same valuer for their own valuation, you might find that both valuations arise to the same figure.
Published on 2nd of December 2014 by Marty Stanowich