There are a number of issues that every party instructing a valuer must do in my opinion to obtain an accurate and true assessment of value. The six essential tips when getting a property valuation.
- Letter of Instruction
- Date of Valuation
- Copy of Certificate of Title
- Contract of Sale or Rates Notice or any sales that you are aware of or information specific to your locality
- Lease If Applicable
- Make sure that the valuer that is valuing your property has the qualifications and expertise
Real estate may be considered as an evolving market, a market not dissimilar to that of the stock market. An ever changing market that is constantly affected by traditional and non traditional market forces. With today’s technology, not only must you have the implicit data, but importantly you must be able to analyse, dissect, formulate and arrive at a value that will encompass all market forces. In saying this, it is not enough just to collate data and hopefully be near where the value is, you need experienced professionals, not only in the sense of longevity of varying market cycles, but in being able to fully summarise and arrive at value taking all factors into account.
FVG provides you with ‘The Top 9 Tips In Getting A Great Apartment Valuation’
1. Be very specific and actually measure your apartment area and associated areas
One of the most important aspects of determining a value of an apartment is the size of the apartment itself, the size of associated areas such as balcony/terrace area and storage cage, if applicable. In short, the valuer assesses value of the apartment on these units of comparison. If there is a variance between the actual size and perhaps what the valuer measures, you have an ideal point to commence any discussion as to the assessed value. This is critically important.
2. Recent Sales Evidence
If you know the sale prices achieved of any recent property sales within your specific development, within the last 3 months, or even the last 6 months, have that information available for the property valuer and provide them with a copy of details of the sale.
One of the factors which underlines the Melbourne property market regardless of sub market category, is the commentary and headline grabs that support a particular agenda. In most cases, it is a journalist that is stuck providing any true and accurate source of reference and hence sensationalises a headline and then grabs partial information and data to provide very general information to the property participant.
As a highly qualified professional with some 25 years of experience in the property industry, spanning from commercial to residential, from sales to development, from finance to investor, I feel that I have a sense of purpose of reporting to the market ‘as it is’, no hiding. Yes, perhaps general information, but in no way serving a purpose, of which, is usually to sell product or support the efforts of a group of individuals.
The market has turned, all the pundits are selling the virtues of a bull market in 2013, and the REIV is complimenting this fact by providing their weekly results that suggest both an increase in the number of properties sold coupled with sales rates in the order of 70%.
If you want to highlight this bull market further, you would be saying that we have the lowest interest rates in over 40 years, a correlation as to the question of ‘cost to rent’ versus ‘cost to buy’, a preceding decrease in levels of value in 2012 of some 0-20% across the board, and maybe more in some localities and market segments.
Yes, the stars, moon and planets are all aligned, but are they? I would say that most private investors are still sitting on their hands.