Property valuation is not an exact science and can be somewhat subjective.
Valuers can be legally liable if they place too high a price
on a property and then the lender subsequently, will lose money on the loan.
This factor can cause valuers to be quite conservative with
their estimates.
On the other hand, real estate agents can be quite bullish
when they appraise a property because naturally, they want to secure the
listing and ward off the competitors for your business.
Agents also know that owners/investors want to achieve a
good price, so they alter their estimates upwards to meet expectations.
This is in stark contrast to valuers who don’t have any
vested interests.
Full valuations are
the most comprehensive and involve a complete internal and external inspection
as well as researching comparable sales in the immediate area and the overall
market.
Restricted valuations often just include a "drive by” evaluation and external inspection, as well
some market research of local valuations.
Valuers rely heavily on comparable sales in your local area,
particularly recent sales of properties close to yours that are similar in type
and size.
Sometimes it can be tricky to obtain comparable sales data
to properties in remote areas or properties that have unique features and
styling, so a valuer is likely to be more subjective in these instances.
To get the best valuation outcome for your property, we
recommend the following tips:
·
Provide your own research of local comparable
sales
· Obtain a second valuation if you are not happy
with the bank appointed valuation
· Ask to see the valuation and how they came up
with the valuation figure
Need a property loan?
Contact us @ propertyloans@realrenta.com
Marlene Liontis
Thursday, 23 January 2020
