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Preparing for ‘Valuation Day’

photo-1421940943431-d392fcc1079fsmallTips to getting a good property valuation

Since the main purpose of a valuation is to assess the size, functionality and location of a property (including the land), the obvious way to get a good valuation is to have a good property in a good location and not overcapitalise with costly improvements.

But is there anything else you can do to get a good valuation result?

Whilst we’re not suggesting you to go to extraordinary lengths and spend days cleaning all your windows, there are a few simple things you can do that may increase your chances of getting a favourable valuation.  Here’s some of our top tips…

 

Present your property like you would for an open home

It may sound obvious, but make sure your property is nicely presented. First impressions do count, even with valuers who seem to be primarily concerned about taking measurements.

The valuer is trying to assess what a buyer would pay for your home in the current market. If gardens are overgrown, you are missing some door handles and you’ve got some rooms half painted, it’s easy to see why this could negatively impact the valuation.

 

Know the ‘Unimproved Land Value’

The Unimproved Value of your land (as reported on your Rates Notice) is calculated using statistical analysis.  It’s not completely accurate but it can provide valuers with an estimate of how much your land is worth, so it’s helpful to have your most recent Rates Notice handy.

 

Share any knowledge of recent comparable sales

Keeping an eye on prices in your area can give you an idea of what your property may be currently worth. Valuers advise that the best time to get a valuation is when a few properties that are very similar to yours have sold recently.  These prices will have a direct impact on your valuation, so if there have been some good sales recently, maybe it’s time for a valuation to calculate how much equity.  (Released equity could be used for investment purposes, home improvements, consolidate personal debt or potentially release a family guarantee).

Attending nearby auctions is a good start.  Whilst valuers are generally aware of sales data, very recent sales may not appear in their figures just yet.  If you have recent and relevant information, it can’t hurt to pass it on to the valuer.

But don’t embellish the facts hoping to get a higher valuation. Valuers have a pretty good understanding of property prices in your area.

 

The valuer can only assess what is actually there*

The valuation performed on the day is the estimated valuation of your property ON THE DAY. It cannot take into account any improvements you have planned or have started or are thinking about, because we all know that not all of these will actually be completed. If you want a valuation to take into account these improvements, you better start (and finish) them before the valuation day.

*The exception to this, is when a ‘as if complete’ valuation is conducted. This applies when you’ve got building plans for renovations or improvements. The lender will want to value the ‘proposed end state’, to determine whether they should lend money for the extensions. In these cases, you need to make sure the valuer has been given clear instructions so they don’t turn up expecting things to already be complete.

 

Prepare a list of any recent improvements

Anything that makes the job easier for the valuer can work in your favour. If you’ve completed some recent property improvements, pass this information on. But bear in mind that ‘money spent’ does not necessarily equal ‘increase in value.’

 

Treat an outdoor living area as part of your property

Outdoor living areas are extremely sought after and can sometimes add more value than their cost. This is because for a large part of the year in Australia, they increase the overall living space of a home and as a result, buyers are willing to pay more for properties that have them.

This means that when it comes to preparing for valuation day, you want to make sure your outdoor living area is as appealing as possible i.e. clean, tidy, functional and free from pet waste.




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