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How to avoid a Low Valuation and Upcoming Events in Brighton and Brisbane

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How to avoid a low house Valuation?

With markets across Australia currently easing in value, it is timely to review what options you have to secure the best valuation you can for your existing properties. Lenders usually have a panel of valuers they can choose from but the valuers are randomly assigned to avoid any questions around propriety in this area.
1. Presentation is KING! While they might not admit it, Valuers are not known for their imagination and clients have often been disappointed as they told the valuer their plans but it is not reflected in the valuation. Valuers can only value what they see on the day they see it. So, assume nothing more. Valuers are human and susceptible to suggestion.
Consider the following:

  • Smells -if you are thinking of cooking fish the night before the valuer’s visit – DON’T
  • DON’T spray fake smelling scents around which can be as equally offensive
  • Light – open curtains and turn on all internal lights
  • First impressions – tidy garden etc.
  • If the house has kerb appeal, don’t hide it with overgrown trees & foliage – clip them
  • Hide wheelie bins discreetly and have the garage organised

Prior to agreeing to a visit from a valuer, make necessary repairs, clean everything, particularly any mould and declutter. Valuers are only present for a short time so you might think all of this doesn’t matter, but it matters MORE.
2. Prepare a list of recent sales (within the last three months) of comparable properties. And what constitutes a comparison? The same numbers of bedrooms, bathrooms, car spaces, same age or level of renovation and same square metres of land. Local real estate agents will often help you with this as they know one day you might contact them to sell your house. But do not think because a property is in the same street, and looks vaguely the same as yours, it will value the same. The other floor plan might be better or worse, it might be on a larger/smaller or irregular block or it might have a spa and pool, easements, more trees, car spaces etc etc – all can change and influence a valuer so have clear reasons why yours is what you think it is worth.
3. Ask a Mortgage Broker to do a desktop valuation first to see what is the estimated value as we can usually borrow up to 80% loan to value ratio just using a desktop valuation so if that is sufficient, it can be a lot quicker and easier.

4. Paint is your friend. For a quick clean and fresher smell about a home, painting can make the quickest and most effective difference. Inside I usually use Antique White USA and outside any spray can from Bunnings that has the right colour. I have very easily and successfully spray painted fences using a dark grey which made my back garden look bigger and deeper.
5. What if you are having your rental property valued? If you have tenants in the property, make sure your agent advises the tenants that the valuer will be inspecting the property on such and such a day, and that it is for “finance” purposes only. If you have a good tenant, there is no need to worry them that you are selling if you are not. Also, ask that they make the property look neat, clean and tidy and perhaps give them a few hints on how to do this (as mentioned above).
If you want to discuss any of this further, please call 0412 709 200.
With thanks,

 
 
 


 

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Our very own Ralph Nicholson, mortgage broker and astute property investor,  was recently featured in Your Investment Property magazine, June 2018 edition where he spoke about How to find the next property Hotspot.
Click here to read his interview with Sarah Megginson.

 
 


Quote of the Day:

“Knowledge is of no VALUE unless you put it into practice”.

— Anton Chekhov