Why Can Property Valuations be Different?

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Andrew Scott
January 15, 2018

"Why can valuations on a property be different?" (three quick videos)

1. Why you might have a valuation done.

There's most likely three reasons you might get your property valued.

1. To build some equity. This could be valuable if you are considering purchasing an investment property, or you might be considering selling up and buying a new home. A valuation could provide you on info as to whether those offers from your buyers or offers you're proposing are on the mark.

2. To avoid overcapitalising. If you're considering doing any renovations, this is an ideal time to get a valuation done to prevent overspending. There's nothing like knowing what your current value and equity position is, and also knowing whether what you have planned will add the value you're counting on.

3. To refinance. Depending exactly on what you're looking for from your lender, a valuation is mostly unavoidable when refinancing.

Now check out parts two and three of this series to make sure when the valuer knocks on your door, you get the best valuation possible. Have a great valuation, and if you have any tips that you feel that we've left out, please share via our contact us page. I'm Andrew from True Power Realty enjoy the next video.

2. You can have an impact on the property's valuation.

We hope you enjoyed part one. Let's look at four tips on how to get the best valuation.

1. First impressions, even with a property valuer do count. The presentations of the gardens, lawns, bedrooms, bathrooms, kitchens, everything, present your property as if it were for an open inspection. You only get one chance at this so make your property shine.

2. Collect and present to the valuer recent sales evidence from your area of comparable properties that have recently sold. A valuer with obviously do their own homework, however, the more evidence you can give them about the current market will be helpful for them to determine the best valuation for you.

3. Collect up your rates, notices, land's tax valuations. These won't provide a valuation figure, however, can be helpful for your valuer in determining that figure you are chasing.

4. Be open and honest. Any info you can give your valuer should be genuine and honest. Share with them and demonstrate any features that might not be highly obvious. Have the air conditioning running, have the spa or pool fountain on, point out features such as under floor heating or if you've had the kitchen freshly renovated, the home rewired, and so on. Share with them your renovation plans, particularly if you've had architecturally plans drawn up, as this will help the valuer determine the future value of your home which is particularly useful if you're refinancing. This is going be what the banks are after.

Have a great valuation and if you have any tips that you feel that we've left out, please share them via at contact us page. I'm Andrew from True Power Realty, thanks for watching and enjoy part three, the final video in this series, why property valuations can differ.

3. Three distinct reasons valuations on a property can differ.

Welcome to the third and final part of our series covering why can valuations on a property be different?

There are many things that impact a valuation outcome. Let's talk about just three reasons.

Well, firstly, there's three types of valuation.

1. A full valuation, of which would involve a visit and walk-through of your home by the valuer.

2. A kerbside valuation, and as the name suggests, involves the valuer taking a drive by, which typically might be used more commonly for older homes or if you have great equity levels, of which the refinancing won't be impacting too much.

3. These are normally done in conjunction with the third type, a desktop valuation, which is online research.

Obviously, if you have a freshly renovated property with amazing features, a kerbside or desktop valuation may not get you the highest result. You'll most likely be seeking a full valuation. Each method has its advantages.

Another point to consider is who is choosing the valuer? Typically, when refinancing, the bank is choosing the valuer. And the banks have a more conservative approach, as their main objective is to protect the asset, being the mortgage, and ensuring that in a worst case scenario that asset will be able to be repaid. If you have the opportunity to choose and employ the valuer yourself, then they're working for you, which will provide a greater opportunity for you to prepare better and have longer conversations with them about your plans and all of the wonderful features of your home, like we highlighted in the last video.

Valuers are legally responsible for the information they provide. They need to keep that information on your valuation for at least six years, so typically, can be cautious. Though they might have relatively similar processes to follow when determining the valuation, they're still people, and the level of caution can differ from one to another. So do your research and find a valuer that you feel comfortable with, so you can get the best valuation outcome for you.

Have a great valuation and if you have any tips that you feel that we've left out, please share them via at contact us page.

Thanks for watching this series on why property valuations can differ.

Your feedback is always welcome and if you did find these videos help you are most welcome to share them with a friend. Thank you and have a great day.

Jodi & Andrew Scott