Been looking at a property which we cannot properly get a gauge on the true value of. We think the vendors asking price is too high – this is somewhat backed up by the fact that the property has been on the market for 1 year without an offer.
Contemplating getting a professional valuation to assist us in making a reasonable offer. Thoughts?
Is there any merit in mentioning that you got a indepenedent valuation when you make your offer, or to mention it as substantiation when negotiating? Or just not mention it?
Hi Jay
If you're going to arrange a full valuation then you'll need consent from the vendors to allow access to the property.
My main issue with this option is that you could look too keen.
You could ask your banker/broker to generate some desktop valuations for you – that will give you an indication of the properties value.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks Jamie – the main issue with what you are suggesting is that the property in question is somewhat unique and it is difficult to find some meaningful comparisons in the area.
How do the bankers generate their valuations?
Hi Jay
As Jamie said, steer clear of organising an independent valuation as you will appear too keen. Also you will have to pay for the valuation. The bank will conduct a valuation in the early stages of the financing process. If it doesn't stack up they will soon tell you… and you could go back to the vendor and say well finance fell over because of valuation, so let's renegotiate the price and start again.
It's not like other buyers are beating down the door, so you have time on your side with this one. That said, do you really want a property in your portfolio that would take a long time to offload if you needed to sell it? Can't say I would be too comfortable with such a proposition. I prefer property that would always have plenty of willing buyers.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Yes, you need to pay in getting a valuation from the bank. You need to bear with the process before you get the right data of the property.
And if you've already engaged an independent valuer, and they have already visited the property?
Then so be it – you've got an idea of what it's worth.
If it's less than what the property is advertised for – offer less.
Keep in mind that whichever lender you go with will want to conduct their own valuation too.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
And it was good to get a professional unbiased opinion of the property – which was actually inline with our own estimations of the properties worth. The valuer also pointed out some things which we had not consider, which was valuable advice.
is there any point in using the valuation as a bargaining tool in negotiations with the agent – or will the fact that we have simply engaged the services of a values lend our offer more weight?
You can rate the property based on your valuation. Before you lay down your cards, it is much wiser to look the agent's valuation first. In this way, you can safely determine the right value of the property.
Jay Sizzle wrote:And it was good to get a professional unbiased opinion of the property – which was actually inline with our own estimations of the properties worth. The valuer also pointed out some things which we had not consider, which was valuable advice.is there any point in using the valuation as a bargaining tool in negotiations with the agent – or will the fact that we have simply engaged the services of a values lend our offer more weight?
Hi Jay
If you're keen on the property – work out exactly how much you're willing to pay for it. Present your initial offer to the agent sighting your reasons for coming to this figure – including the valuation you commissioned, the time it's been on the market, the issues identified by the valuer, etc. Perhaps start off with an offer that allows you to move up a couple of times to reach your final offer.
If the vendor is unwilling to sell at the price you've offered – walk away and look elsewhere. Another deal will present – they always do.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
