Sometimes all that stands between you and your next purchase is a property valuation. Here are 10 tips to give you the best chance at a great valuation so that your lender says yes to your loan.
For mortgage security valuations, the guidelines are well defined. It’s the price of the property if traded between a willing buyer and seller at the time it was inspected, but with neither party so eager as to overlook normal business consideration. The valuer will assume a standard local marketing campaign for the property of eight to 12 weeks, but the assessment will be based on the market as at the inspection date, not speculation on where the market is going.
Valuers are generalised as conservative, but that’s not always the case. They’re tasked with assessing what price the bank could reasonably achieve for the property if the borrower can’t service the loan and it needs to take possession. It may seem this environment would be prime for a low figure, but keep in mind valuers are, for the most part, independently contracted and reliant on financiers for business. If a valuer is consistently and unrealistically conservative, the financier can’t write loans and questions ensue. If a valuer can’t justify their figure as reasonable, he/she will be hit in the hip pocket through loss of business.
It’s no longer all about the figure either. Reports contain risk ratings and commentary that can mean the difference between a breezy approval and a costly mortgage insurance addition to the fees – or even a knock back. Sometimes the report just needs to be done quickly with the figure of little consequence in the scheme of things.
So how do you go about ensuring you get the best possible result for your valuation report?
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