Selling or buying a property can be one of the biggest financial decisions you make. Having an accurate idea of your property’s value is crucial, whether you are looking to buy, sell, or just want to understand what your home is worth.
A property valuation provides this value estimate. It is usually carried out by a licensed professional valuer or conveyancer on behalf of the bank if you are seeking finance. However, there are things you can do to ensure the valuer has everything they need to make an informed assessment. Follow these 10 tips to get the most accurate valuation for your Melbourne property.
1. Tidy up inside and out
First impressions count. Ensure your home looks its absolute best by thoroughly cleaning inside and out before the inspection. Paint touch-ups, decluttering and staging can maximise your home’s appeal. Mow the lawn, trim bushes, clear gutters and make exterior repairs. You want the valuer to see the property at its full potential.
2. Have documents ready
The valuer will need information like original floor plans, certificates of title, council approvals, previous sales records and rents. Compile these documents beforehand so the inspection runs smoothly. Details of renovations, repairs or improvements made during your ownership are also helpful.
3. Be there on the day
It’s best to attend the inspection so you can answer any specific questions. Point out property valuation features you are particularly proud of and share insights that may be relevant like plans for neighbouring developments. Your perspective provides context beyond the visual inspection.
4. Highlight issues for transparency
Don’t hide flaws hoping the valuer won’t notice. Instead, be upfront about defects, damages or problems affecting valuation like flooding risks, noisy traffic or lingering damp. Honesty allows the valuer to factor issues into their calculations for a more accurate estimate.
5. Research local market values
Check recent sales prices for comparable properties in your area to benchmark expectations. However, leave detailed valuation discussions until after the inspection when the valuer has fully assessed your property on its own merits.
6. Consider an independent valuation
If you feel the bank’s valuation doesn’t reflect fair market value, an independent assessor can provide a second opinion. Their detailed report may support your property’s worth for finance negotiations or highlight areas to address before selling.
7. Ask about valuation methods
There are three main approaches – the market approach, income approach and cost approach. The valuer may use one or a combination. Knowing the methodology helps you understand how they determined the final valuation.
8. Don’t over-invest pre-valuation
Hold off extensive renovations until after the valuation, as you may not recoup the full costs. Minor styling like fresh paint can add appeal without spending thousands. Focus spending on repairs and maintenance.
9. Review the valuation report
Carefully examine the detailed valuation report once completed. Ensure factual details are correct and ask the valuer to clarify anything that is unclear. Use the insights to negotiate, set reserves or make improvements.
10. Work with the right valuer
Qualified valuers must be registered and follow industry standards. Search online reviews and choose someone experienced in your area and property type. For example, an apartment valuer may differ from a house valuer.
Preparing well for the property valuation process allows valuers to make a fair and accurate assessment. Follow these handy tips to achieve the optimal valuation for your Melbourne property, whether buying, selling or seeking finance. With the right preparation, you can maximise your next property deal with confidence.
