ok we are getting a top up loan on our house so we need to get the house valued by the bank. Just wondering apart from keeping house clean and tidy what do they look for in a house and how may i help increase the price.
(o_0) hehe
It may not be up to you. Some valuers for financial providers do drive-by valuations. Many though, would enter the premises. If they do so, I guess they’d be looking to see that the place is well cared-for, with no holes in the walls etc.
Valuations are basically done on past sales (minimum of 3 in the same location for the same amount of bedrooms etc) and on “market value” based upon land value etc.
You could pretty much find out the value of your place yourself if you ask your local friendly RE to do a “market appraisal” on your place- whihc will be free. Generally, they’ll check the Valuer General’s past sales, and chuck a figure onto a piece of paper for you. Market appraisals are often wildly ifferent to valuations because the RE wants your business so they can sell for you, so sometimes they can inflate the price.
Bank valuations can also be lower than you might hope for, as the bank acts conservatively so as not to give you inflated equity in the case of default.
You can find other info on valuing (valueing?) your place yourself from residex.com.au or the homepriceguide.com.au
kay henry
so they really only go by the condition of the house and not all that cosmetic stuff like nice gardens and stuff. I only ask this because our front lawn is very good with fish pound and retaining walls. But the back yard only has grass and not much of a garden due to the fact we own 3 german shepards. So will that make a diff to the bank when they value house..
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Wouldn’t think so regarding the back yard, don’t forget they look at the sale prices of Comparable residential premises in the area , land content and value and i presume it’s rental capacity in that area. Presume it’s your Principal Place Of Residence ?
I usually ask 3 different Real Estate agents to do a valuation on the premises to get an idea also, some will ‘value’ higher than others trying to get your business if you decide to sell, the bank valuer ( and i Believe most outsource now) will generally put a lower and more conservative value on it.
I always have my ‘3’ independent valuations to present to my broker along with the bank doing thier own..
REDWING
“The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”
Hi,
From what I’ve seen valuers are human and WILL value a house higher if it looks well cared for without half-done repair jobs everywhere – unless it’s in the middle of a SHORT renovation period of course. Bad/messy tenants are the worst. Valuers are pitching the price at what they think it would sell for in less than 3 months.
Having a bare dog-friendly yard shouldn’t be a drawback as long as the rest of the property is of a consistent high standard. I also think it’s very beneficial to be present when the valuer comes through, and point out to them all of the improvements you’ve made since you purchased the property, including some of those little cosmetic things like ‘cleaned the roof tiles’ and new lights/curtains/carpets/screens etc. If you’ve got a wooden deck, oil it, if you’ve got some tatty furniture, store it out of sight, if the doors squeak, oil the hinges. A few dollars and a bit of effort could add many thousands because it’s ‘sale ready’.
Historical sales aren’t everything – I’ve recently seen a $360K+ house valued at $280K because of lazy tenants and a $320K house valued at $350K because of care and attention.
Good idea about 3 independent valuations too.
Good luck and Merry Xmas!
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Mel
[email protected]It’s not only all what MEl said, it is also, some valuations are done in regards to quick sales (a 30 day sale), the valuers themselves under value the property either because they are; asked by the lender, the become conservative because of their prof insurance, or they just always do it.
I know of 1 valuer in Brisbane that will always under value the property by $10-$20k, because he/she thinks the market will be like that in the future. This is what a valuer should not do, they should value AS IS in today’s market.
On the positive side; if a valuation comes under, you should try and convince the valuer to raise the figure to what you need. Generally, best if you do this through a broker as they should be able to negotiate better. Is quite easy to do.
1 method is to do similar to what Redwing suggested, 3 comparitive sales from real estates, these sales must be in area and of similar property. I don’t think, that appraisal’s from real estates are going to make much of a difference to lenders. As mentioned before real estates want your business and lenders go by their panel valuers.Also in regards to gardens etc. OF COURSE, they take that into consideration, if the garden is good it adds value, if it’s not, well – you know the rest.
Remember the appearance of the front yard can add thousands to your property, when completed nice. First imppresions!!
The next thing would be a great kitchen, then bathroom.
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