Best time to request a valuation after a comparable property sold?

[Edmond Dantes]

A townhouse within the same complex I live in is under contract for approximately 30k more than what I paid for mine. Mine is slightly bigger in size (sqm) and renovated.

Once the sale goes through, should I go ahead and request a valuation for equity purposes asap and have some comparable sales ready for the valuer? Or should I wait for some time?

The reason I ask this is because I remember reading that it was better to refinance and keep the money in the bank, instead of waiting and probably experiencing a market change during that time.

thanks

 

[Noodle]

A townhouse within the same complex I live in is under contract for approximately 30k more than what I paid for mine. Mine is slightly bigger in size (sqm) and renovated.

Once the sale goes through, should I go ahead and request a valuation for equity purposes asap and have some comparable sales ready for the valuer? Or should I wait for some time?

The reason I ask this is because I remember reading that it was better to refinance and keep the money in the bank, instead of waiting and probably experiencing a market change during that time.

thanks

A valuer will correct me if im wrong, but im pretty sure valuers are now only allowed to use comparable sales for properties that have settled and are with the VG office, as opposed to being on agents advice.

They will also use more than one property as a comparable to ascertain value, so this sale alone may not be sufficient for the higher valuation.

 

[Rolf Latham]

there is also a good chance the valuer will specifically exclude that sale............odd I know,but we have had ita lot where valuers have been taken to task on it,and they suggest that external sales to the complex / development are more relevant.

I can see that logic where the development is newish, but not where its > 2 or 3 yrsold

ta

rolf

 

[Edmond Dantes]

Thanks guys. Rolf - very surprised with what you mentioned. I'll obviously wait for this property to settle and see how the market is doing outside my complex. It appears to be strong from what i can see.

 

[Dazedmw]

there is also a good chance the valuer will specifically exclude that sale............odd I know,but we have had ita lot where valuers have been taken to task on it,and they suggest that external sales to the complex / development are more relevant.

That can be a bank requirement, depending on the lender. From a valuation point of view, i agree its not logical, but from a lender's risk perspective it makes sense to get a valuation based on sales in a wider range of developments.

Another example of why a bank valuation may only be a rough estimate of true "market value".