As a Property Investor you will periodically have your properties revalued. This will allow you to see the performance of your investments, but more importantly it will allow you to obtain additional finance to help grow your property portfolio.
So if your Investment property has gone up $100,000, most lenders will allow you to borrow up to 80% of this amount. That means they will be willing to lend you another $80,000 which you can use as the deposit on your next investment.
However getting a low property valuation may mean that the loan application is refused or you can only get a loan but at a reduced amount because the valuation came in too low? In our current economic times, low valuations are becoming common place and have been the cause of a lot of distress for home owners and investors.
There are some things that you can do, however, to increase the chances of getting a better valuation.
A lot of the principles that apply to renting or selling a home also apply to getting a valuation done. First impressions are the lasting ones and the person doing your valuation will not be different to a buyer or renter in that regard. It is about presentation, presentation, presentation!
The property valuation will start from the moment that person steps out of their car and sees your property for the first time. Having a clean tidy yard with mowed lawns and safe footpaths will immediately create a positive mindset.
Next, the eyes will turn to the exterior of the building on the walk to the front door. Is the Valuer seeing a well maintained property or looking at leaky gutters and paint peeling off?
Once inside, the Valuer will also be affected by the state of cleanliness and overall presentation as well as the state of repair.
Remember the Valuer can only assess the worth of the property on the day.
Telling them what you are going to do to the property will have no influence on the outcome. If, however, you have quotes, costings and plans for future improvements, discuss that with your lender prior to the property valuation so they can instruct the Valuer to undertake an “as if complete” quote.
It is helpful to the Valuer if you have paperwork that details all the recent improvements that have been made and what they cost. Rates notices are also helpful as there are values on there such as land only which can be a guide for the Valuer.
For Investors one of the best times to get a current valuation is when you have, say, two or three recent sales that are very similar to your property getting valued. Obviously such sales have a direct effect on the valuation that you will receive.
The last tip is to let them get on with their job. And don’t expect an answer that day about what they reckon the value is because they won’t know until they have gone away and done all of the analysis required.
By following these simple tips you may well improve your chances of getting a better property valuation.