Friday, September 28, 2007

Tips on how to maximise your valuation

Tips on how to maximise your valuation If you’re looking to re-finance on your existing property to invest, you’ll need to obtain a valuation from a licensed valuer. Obviously the chances of a favourable valuation come down to your choice of property in the first place and what the market is doing at the time. However there are a number of things you can do to make sure you pull off the best valuation possible on the day.

1. Presentation
Make sure the gardens are looking nice and the house is de-cluttered. First impressions do count, even with property valuers so prepare your home as you would if you were holding an open for inspection.

2. Recent sales evidence
The easiest way to keep tabs on sales in your area is to attend open inspections nearby. Whether it’s an auction or a private sale, hold on to the brochure when you attend the open home so that your valuer will be able to track down the agent to confirm the selling price.

3. Be honest
Don’t exaggerate sale prices in the area, costs of renovations, etc.  Valuers are experienced, professional people who will in most cases be able to see through this.

4. Make your improvements prior & keep a record of them
If you have improvements to make, do them before the valuer comes around, as they have to value the property as they find it on that day. A tip: A well presented bathroom & kitchen which isn’t dated will have a positive impact. If improvements have been made to the property recently, provide a detailed list of works conducted and the cost of these. Supplying project specs and a building contract would give the valuer an idea of exactly what has been spent. Bear in mind that cost does not equal value in all instances.

5. Don’t overcapitalise
Do not spend more on a particular improvement than that particular area can cope with. Putting on a large extension will obviously increase the value of the property but it may not increase the value more than what it actually cost. That’s generally dependant on the quality of the area.

6. Outdoor living areas
Outdoor living areas are one thing which can add more value than cost. So, aim for a well presented and functional outdoor area as it generally reflects well on a valuation.

7. Be patient
Lastly don’t ask the valuer what they think it’s worth just as they’re leaving.  After visiting the property the valuer needs to go away and complete their analysis.
Karen Raffen, CEO <>

© Toop Real Estate Group

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