Help - Valuation tomorrow ?

Hi

A modelled estimate of my ppor valuation came in at $239 K. This is too low. Tomorrow they will be coming inside my unit for approximately 10 minutes to do a proper valuation.


I need it to be valued at $260 K or else I wont be able to afford to buy the ip.


Similar comparable properties close by sold for:

My unit that I bought as my ppor i paid $255 K (renovated)

My unit complex in Highgate $262 K (renovated)

My unit complex in Highgate $235 K (unrenovated)

Stanley Street in Mount Lawley $260 K

William Street in Mount Lawley $258 K

Cambridge Street $275 K


I had an interesting chat with an agent on the phone. He specialises in selling 1 bedrooms and says that he knows my unit complex well. He can remember a few of the peoples names who live in the unit complex.

Anyway he believes he would be able to justify to the valuer a $275 K valuation based on recent sales surrounding Highgate including suburbs such as Mount Lawley, Perth, Leederville and other inner city suburbs.


He says he is willing to talk to the valuer to justify that my place is worth $275 K. He would run through his recent sales figures i guess. What is in it for him though? Is this a bad idea for him to talk to the valuation company? Can this backfire. What would he want in return from me? What are the things to look out? The pros and cons? As I am new I am weary and very cautious.

Perhaps he is looking at it from another angle. I might want to buy something from him in the future, or I might recommend his name to someone who is wanting to sell their property and he could gain from it in that way. I dunno.

Any help would be appreciated?



Sorry this is so long but apart from telling the valuer the latest sales figures and promoting my unit what else can I do to help improve my chances of a good valuation?

I have cleaned the place. It is very tidy and de-cluttered. I have put things away in drawers so its looking more spacious too.
 
Valuers don't get fooled by neatless and spacious looking. They have measuring tapes and cameras so it's all objective.

The neatness and unclutteredness gig is for prospective *buyers*, who *are* fooled buy such nonsense :)

I need to get one or both of mine revalued soon. Fun fun fun. At least I know I don't strictly need to rake up all the baby toys and herd the cat into an aresthetically pleasing sleeping spot.
 
Valuers don't get fooled by neatless and spacious looking. They have measuring tapes and cameras so it's all objective.

The neatness and unclutteredness gig is for prospective *buyers*, who *are* fooled buy such nonsense :)

I need to get one or both of mine revalued soon. Fun fun fun. At least I know I don't strictly need to rake up all the baby toys and herd the cat into an aresthetically pleasing sleeping spot.

I still think it all helps. It being clean and everything. ie i will make the kitchen sparkle, they will be able to see the nice renovation. Better that than having dirty dishes and mess around haha.

Next time I think I will value it first before buying ;)
 
Don't want to burst your bubble Kim, but valuers are very unemotional and pragmatic bunch.
They will look at the nature and condition of the property and comparitive sales etc.
Sparkling kitchen etc. is a bit like peeing in your trousers. Nice warm feeling, but nobody notices but you.
If you get lucky, they might even have a look inside the place, rather than just do desktop or drive by valuation :)
Good luck with the valuation. Let us know how it goes!
 
I still think it all helps. It being clean and everything. ie i will make the kitchen sparkle, they will be able to see the nice renovation. Better that than having dirty dishes and mess around haha.

Next time I think I will value it first before buying ;)

As has been said..

Valuers realise that people are living in a place. Dirty dishes dont change the benchtop material or the quality of the appliances.

De cluttering as said is nice for you but it doesn't change the size of your unit that I measure - mNy times I am in a place and I comment to the owner .."if you put this place on the market make sure you de-clutter" ; but to a valuer it doesn't make a difference.

I am a valuer .. so I will give you a few pointers as to how I (I am not every valuer this is just me) work in relation to what you have posted..

Good ways to **** me off/annoy me when I am doing an inspection are..

Follow me around and point out that the room with the bath and shower is the bathroom, or the place with the kitchen sink and the dishwasher is the kitchen .. wow ..I never knew that .. I grew up in and still live in a tent .. oh yeah, in inspecting a couple of thoussand properties a year I haven't worked this out yet.

Just follow me around .. trust me I will leave all the silverware and won't look in your bedside drawers.

Try to sell the unit to me .. I ain't buying it and I have more experience in working out what a property is worth than you - trust me on this.

Show me other properties advertised for sale with the asking prices only... yeah, guess what I can look at real estate dot com as well; I do know how to use the internet and I don't just look for properties that justify the price you want I look at properties that are comparable and or I make adjustments for the differences.

Ask if it's ok for an agent to call to try to tell me how to do my job ... I hate it when the agent, hoping to get your business says that a "comparable unit" in a better location or is larger or has an additional carspace etc sold for a figure that justifies the figure you want ....if the agent thinks it's worth $275k then let the bank rely on that ...

However no matter how much you **** me off with all these things I will still be objective and put a value on your unit that I can justify in court with analysis based on comparable sales .. it will be the same value I put on it if you don't annoy me ... but if you have really annoyed me I may point out every little flaw with your property or location I can in the report to the extent that the mortgage insurer won't touch it ... so please don't annoy me!

Basically in summary .. nothing you can do will change the important things .. where the property is (location factors), the age, the condition the size and the accessories .. these form the basis for my valution figure.

I trust this helps,

cheers

RightValue
 
Basically in summary .. nothing you can do will change the important things .. where the property is (location factors), the age, the condition the size and the accessories .. these form the basis for my valution figure.

I trust this helps,

cheers

RightValue


Cool thanks very much for this reply. I appreciate it. Now I will know how to act tomorrow, lol or how not to act/what not to do.


I'll let them do their job, and will hope for the best.

:)

ta
 
the trouble is valuers do rely on tape measures... where as buyers rely on feel, looks, style etc. The buyers are the ones with the cash, not the valuers.

One problem with a valuation is that it is historical. In a rapidly rising market such as we had in 2006 they simply couldn't prove up what the market was dictating.
 
Basically in summary .. nothing you can do will change the important things .. where the property is (location factors), the age, the condition the size and the accessories .. these form the basis for my valution figure.

How do you value more 'interesting' buildings?

I'm interested in a property that is a 'one of a kind' as far as recent sales go. They've got it advertised at the same price as a small 3br house on 800sqm would be worth, but it is a church on 2000sqm. Unconverted so really its just an overgrown warehouse - its fairly plain too, basically just a large hall with a pointy roof and pigeon issues. No landscaping, nothing.

What the hell would you use to compare it to?
 
On that logic its $100k overpriced, and I could buy it today. There's dozens of 1000-4000sqm vacant blocks sold recently for very very similar prices to each other. The most recent church sale was 15km out of the town, on an acre, had a bathroom and more than one building, and went for $85k (well over land value). This was only a few months ago and is probably the most comparable sale. The most recent and closest *house* sale was an unrenovated 4br place a few doors down on twice the land content which sold for a horridly inflated price, probably because it had 6 large sheds and that REA is a shedophile.

What's it cost to get a Real Valuer to look at it, without a bank loan approval? If it comes in low I could slap the REA around with it a bit.
 
You are almost right. I know you said that TIC Greg but when a valuer cannot find any comparables they can fallback on the "summation" method. i.e. Land value + the value of any improvements (eg the building) summed together to = val.

Sprung! Actually, while it was TIC, I expected it would be close to true but I don't have the experience to back it up as you do.

Cheers
Greg
 
How do you value more 'interesting' buildings?

I'm interested in a property that is a 'one of a kind' as far as recent sales go. They've got it advertised at the same price as a small 3br house on 800sqm would be worth, but it is a church on 2000sqm. Unconverted so really its just an overgrown warehouse - its fairly plain too, basically just a large hall with a pointy roof and pigeon issues. No landscaping, nothing.

What the hell would you use to compare it to?

Before I answer I want to ask you this..

You are the buyer, so in theory you are the market.

How do you work out what you are prepared to pay for it?

cheers

RightValue
 
How do you work out what you are prepared to pay for it?

If it were me, I'd work backwards. Figure out what I'm going to do with it and what the end-value of this is, then do the math. So if the plan was to subdivide by four, build on each then sell it'd be:

End value - all costs - required profit margin - little bit extra for things going wrong = value of land to me.

I think it's the perfect example of something only worth as much as someone wants to pay. A brand new Holden Ute isn't worth $65,000 to me if what I need is a Holden Barina. I might offer $20,000 for the ute, because for the right price I could compromise, but at the end of the day if the dealer is targeting people who want Holden Utes and will pay $65,000 for the pleasure, we're not going to do a deal and I'm going to keep looking.

In this case as I'm presuming there's not much demand, you've got a bit of leverage. It's like a hostage situation - the capturers have a market of one, so they can't afford to kill the hostage because they're not going to gain anything, so they've got to work with the market they do have (presuming they have half a brain).

Gawd, I'm full of bizarre analogies today.

Cheers
Greg
 
How do you work out what you are prepared to pay for it?
Dead easy. I can only afford about $100-110k, so I'm fishing for a house worth about that much, preferably less. This one seems to fit the bill. There aren't many around for that price - usually gets you a run down but liveable 2br house. The block of land it is on *is* worth $50k, anything over that is the structure.

If I can buy a 3br house 1km away on 1400sqm for $65k I reserve the right to attempt to sweet talk my way into a disused church on 1900sqm for $110k :)

Edit: should mention that anything that isn't a $160-500k perfectly renovated or completely habitable with minimum cosmetic work needed house tends not to sell very fast. People out here like their houses ready to go, the DIY crowd obviously live somewhere else.
 
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