Hi we are utilising a local professional property valuer to get a definitive current value on our own home. While the guy is here I want to get the most bang for my buck and bombard him with questions to which only property valuers know the answer. I’m fishing for investing and renovating tips from the guy. Anyone with any GOOD QUESTIONS please respond, I’ve thought of a few but as with accountants it’s the quality of the question that gets the quality answer.
1. where is the property let down?
2. would changing the carpet or knocking down this wall add value?
3. does the paint color appeal to the broader market?
4. is it worth spending $2k on a new kitchen?http://www.posigear.8k.com
Positive Geared Share InvestingHe should give you, so ask for;
3 comprable sales in the area no more than 12 months old, tell you what they sold for and why in his opinion they are inferior or superior to yours.
Thats about all a valuer can really tell you. If they were any better than that, they would be retired, owners of the firm, employing valuers or property developers
.Yes Home Loans Pty Ltd
Is your mortgage advisor accredited with the “Non Bank Lender of the Year?”
(Money Magazine 2005).As a valuer myself I can tell you that I am usually quite cagey when asked questions – professional indemnity insurance comes very expensive these days!
By the way, LB seems to have a chip on his/her shoulder….wonder why? I can probably guess.
Still, some valuers even invest in +ve cash flow property so they can’t be all bad!
relliott
How do you get a valuer to get off his **** and give a REAL valuation, not just a VERY SAFE valuation that “blind Freddy” could have come up with? We have had two recent experiences where the valuers have gone ultra safe and affected our LVR. Not impressed!
Cheersjs
Hard question. I know it shouldn’t be, but it usually comes back to the purpose of the valuation.
In your case it was for finance, and the valuer is going to have to be conservative. Unfortunately some banks use the valuers PI insurance as their safety net and too many valuers have been sued for being optomistic in the past.
It’s the real estate agents job to be an optomist and the valuer to be a realistic. Lets face it, if everyone was aboveboard and honest about real estate transactions, then valuers would be out of work.
Too often the valuer is proven correct when a property is sold. Sure there are always exceptions, but unless you can give me a crystal ball and an idiot meter (because plenty of people that buy real estate are idiots and I can’t count on that in a valuation) I can’t do any better.
My best tip when you get a valuation is to keep copies of all agents brochures of property that has sold near your property. Give them to the valuer when he/she comes to value your house, it might help get the value up.
Don’t be surprised though if the places that you keep brochures for have actually sold for a lot less than asking price. Valuers can access that information (so can you) and it can be quite surprising.
Hi Relliott,
I’m sure many forum readers appreciate your input and expertise, as far as I’m aware we don’t have a valuer on the forum so it would be an added bonus if you could continue to contribute and answer questions as you see fit & time permitting of course, cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Originally posted by relliott:By the way, LB seems to have a chip on his/her shoulder….wonder why? I can probably guess.
Still, some valuers even invest in +ve cash flow property so they can’t be all bad!
Hi relliot
I am sure you are a great valuer and my comment was somewhat tounge in cheek and yes there are plenty of good valuers out there. There are also some really bad ones.
The most common arguement I have with them is that what they do is in no way an exact science so when a customer buys a property for say $440K and I get a valuation back at $430K, I am sorry but that is jsut a valuer playing with his doodler. No one can say a property will sell on a certain day with any degree of accuracy for $430 not $440K. The difference can often mean doing or not doing a loan and in extreem cases, the difference between a $5000 Mortgage Insurance Bill or not.
I can understand $400 not $440 but I cannot understand why valuers (not you I am sure) insist on crucifying a deal based on what appears to be just ego.
Thank you for listening, I feel much better now
Yes Home Loans Pty Ltd
Is your mortgage advisor accredited with the “Non Bank Lender of the Year?”
(Money Magazine 2005).Good arvo all,
In regards to valuation I am interested in your thoughts on my situation.
I bought an ARMADALE home in a good street 2 months ago for my Mum to live in (best tenant). Real Estate Agent is a family friend.
The house first went on the market for $180, when we looked at it the second time it was $170, I purchased it for $163. The sellers had to move to Darwin ASAP.
I have since repainted the interior of the house top to bottom in a neutral colours (before it was only undercoated & with pink doors & an orange lounge room EWW).
Tiled the laundry & toilet (mouldy lino before)
Replaced all carpet (no amount of supa dupa cleaning got it clean).
New cupboards & mirror shelf in bathroom.
New cupboards in kitchen.
Still to spruce up garden more but has very green grass now.Q1. What conservative rate of value would this of added to my house.
Q2. Does the furniture in the house affect value.
Q3. Where do we find a good property valuer.
Q4. I am wanting to draw out equity. Will it go straight into my bank account & do I need a reason for it.Kindest regards
Millie
Dear LB,
Thank you for your reply. I do appreciate that your comments were tounge in cheek, and I think I understand what your problems with valuers have been. (After all you are in the finance industry) I do agree though. Its a pretty tough call to value a property below contract price unless there is a really good reason not to.
Just occasionally I feel the need to adopt a lower value, but usually its when a purchaser has got a bit too emotional about a deal or they have been mislead by the agent etc.
Long term paying a bit extra might be OK if you get good capital growth, but valuers have to look at it from the banks point of view. If the purchaser goes belly up tomorrow, how much will the bank get out of it. If they lose, you can bet they will try to sue someone (read valuer).
However, I do hope that there aren’t valuers out there operating on ego only. That is very unprofessional and gives us all a bad name.
Anyway, I’m glad you feel better, always good to get it off your chest….
re
I am buying my first home. Just few days a go I did my inspection on building/ structural and PEST inspection. I got the report and it have major safety issues such as ceiling sagging and pumping work and as well active PEST. The guy who did ask to do a invasive PEST on the property.
I try communicate the real estate agent as well and sent the repeat explain all things in the report to address to the issues. It’s been now more then five days no reply and every time I call the agent they say we all looking it to it.
All I just want to terminate the contract as the house have active White ants. What to do to terminate the contract? If they say I can’t dispute the contract I am legally obligated to buy this house? Will insurance will cover me if I am obligated to buy this house? Hope some one answer me.
Thank youhi James,
All I just want to terminate the contract as the house have active White ants. What to do to terminate the contract? If they say I can’t dispute the contract I am legally obligated to buy this house?
I hope you have had a solicitor helping you through with your purchase. If you have, then they should have advised you to formulate the contract with the right words so that you CAN void the contract if the building and Pest report is not satisfactory.
Look at the contract you have in front of you. If it has conditions like that, then you can void the contract. If you don’t have words like that, then I think you should see your solicitor asap. In fact, see them anyway – as, if you are to cancel the contract, then THEY will be doing that, and notifying the vendor’s solicitor, etc.
I hope all is good, and your solicitor has helped you draft the contract up-front,
Benny
Speak to a solicitor ASAP! If you can’t void the contract due to the pests, most have the ability to do it on finance, and I would just claim that.
Speak to your solicitor for the purchase immediately – if you do not have the right contract conditions in place you may be locked in.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
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