Property Valuers

* What does a valuer specifically look at when valuing a property (block size, property condition, number of rooms, car accomodation, etc etc)

* What other considerations does the valuer make when looking at a property (recent sales, property age, etc)

Valuers will look at your property and identify it’s key features which include the points you identifed in your first question. This information is digested and then records of recent, similar comparable sales in the immediate area made. This gives the valuer an indication of the worth of your property which helps them derive a valuation figure.

* Is a valuer likely to give favourable valuations for cosmetic changes? Or is a 3 bedroom house in suburb X a 3 bedroom house in suburb X.

Valuers tend to be more focussed on the big ticket items in the property. Cosmetics may add a few dollars to a valuation for finance but not necessarily so. They tend to be more interested in the underlying value of the property.

* Will a bank take a valuation from an independant valuer, or do they always need to use their own?

Not usually. Banks prefer to use valuers from their panel. In some cases banks have preferred valuers for certain postcode areas.

If you are going to use a banks valuers make sure they are suitable for the relevant area and that they write the valuation suitable for mortgage purposes for the relevant institution.

* Any other info that is relevant to the valuing process.

While the valuers claim their process is scientific – I do not believe this to be the case. The beauty of my current role is you get to see the discrepancies that exist in valuation reports.

For example just recently I became aware of three valuations for finance done on identical units in the same complex. The units were between 3/4 years old and the valuations were all done for the same bank (a big four lender). The valuations received were $240K, $235K and $280K – go figure.

Thanks

Dave.