Property valuations are an inevitable part of the house buying process. Your creditor does them when you refinance, get a home or accessibility equity. In order that they don’t loan you more than your house’s worth it is a safety net to your lender. Valuations can also provide you with an indication of the worth of the asset you are about to purchase or have.
When refinancing to a lower rate of interest or to obtain equity in your property to set up a renovation or property buy, a valuation can make or break your strategies depending on how far above your expectations, or under, it comes in at. Here are a few things to help prepare you for a valuation and its results.
● Choosing a valuer
Unfortunately, in many cases you do not get to choose your own valuer. Lenders are likely to have a valuation firm or their own internal evaluation staff they trust and know. This is because there’s an expectation that in case you select a valuer yourself, the valuer’s working for you you’re more likely to get a better outcome, whereas if they are ’employed’ by the creditor then they’ll be more cautious to protect the lender.
● Types of valuations
Desktop, kerbside or full valuations each have different advantages. Recently those with characteristics that will need to be viewed, such as perspectives or properties, are much better off having a full valuation in which a valuer inspects the house, moves and visits. Drive or kerbside by valuations demand the valuer sighting the house but not really go inside, which could benefit rundown properties that are older or more. These are done with a evaluation, which entails internet research of market values to the area , recent sales and property paperwork in combination.
● Align with your mortgage broker
If you are refinancing via a mortgage broker, they are going to have discussed the value of this property and made a recommendation to the creditor based on this and their own assessment. Make sure you are aware of whether the valuer asks what you think that your house’s worth is, and what your mortgage broker has recorded, do not say lower.
● Erring on the side of caution
Accredited valuers that are accredited are legally responsible for the information they provide and must keep copies of all records and information to do with the real estate valuation for no less than six decades. This means they are naturally more inclined to be more conservative in their valuations to protect themselves, rather than get a name for a valuer that over-inflates prices.
● Do your research
If a valuation comes from well under your expectations, having a reasonable anticipation of what your house is worth will help save a lot of heartache. Look at sales in the area real estate agents might be delighted to give you a list of sales . Be cautious as they are looking for business from 20, if obtaining an assessment from a sales agent’s and may provide an evaluation to attempt to win your company. When comparing sales, make sure you take note of properties which are most similar to yours in land and/or property dimensions, number of bedrooms/bathrooms, land age, views and some other renovations.
We, at Romeo Property Valuers, pride themselves on providing comprehensive property analysis. We strive to deliver market-leading strategic and innovative property advice using state-of-the-art valuation and information technology systems in order to enable you to make informed financial decisions.
Get in touch with us today to get a better understanding of your property or request for a valuation here