Rent=Valuation?

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From: Bydntsel .




Just settled on IP. Front house 3 Br. Back 2 Br Unit.

Arranged fore rental valuation with local agent.

In discussion I mentioned Quantity Surveyor.

Agent suggested having the properties with 12 month leases in place first to get max valuation .

Will the rent influence the valuation ?

Dose anyone have experience or info on this type of deal.

Any help greatly appreciated.

Bydntsel.


"Follow your own advice"
 
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Reply: 1
From: Adam Randall


Hi Michael
That exact thing happened to me the other day, tenants have let the place go a little bit, the result is value comes in a fair wack under what is expected. Valuer said himself if the place was nice and tidy, he would have had no problem valuing it at the higher level I wanted.
Regards Adam
 
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From: Anonymous


Hi all,
From my own experiences with valuers, I have found that a high rental yield will influence the final valuation to some extent. However, if you are seeking the highest valuation possible, unfortunately, in my experiences, you will have to do all the work for him/her. I always present the valuer with at least 4-5 properties in the area that are very similar to mine that have been sold recently. I give as much information as possible about the other properties as I can(condition, age, no. of b/rms, proximity to amenities,rental yield,etc) and compare these to mine, without suggesting what I think mine is worth. The valuer not only takes you very seriously, in most instances he/she has come back to me after going through my presentation, and asking ME what I think it is valued at. BINGO! One valuer called me up a few months later asking my opinion on a property he was valuing for the bank in the same suburb as mine was in.
May not work with all valuers, but if you can be bothered(and any serious investor should)it is at least worth a try.
Regards
Topaz
 
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Reply: 2.1
From: Felicity W.


The more information you give your valuer, the better.
Last time I revalued our home I forgot this (hey, I was 7 months pregnant! hehehe). Valuer turns up, one of the first questions was what sort of prices other houses in the area had sold for recently - I didn't know. And to be fair, it probably wouldn't have meant much. We live in the Dandenongs outside Melbourne, and a 3br home here can vary enormously in value and quality. But still...
Anyway, towards the end I mentioned that our new council rates valuation was $240k.
Guess what our valuation came in at....
Next time I get the RE agents in here first and get some background information too before I let a valuer in the door.
Keep smiling
Felicity :cool:
 
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Reply: 3
From: Pierre .


I'd have to say that rental return is just one of many things that influence valuers, but an important one nonetheless. I had a property valued 6 months that has a very high yield, but only had a short rental history. The valuer told me to call him back in 12 months for a revaluation once I had established a better rental history. He said he would up the valuation by $30,000 based on that alone.

Like the others have said - valuers are just human - they react to different stimuli. You just need to know which buttons to push - what they like. Play up the good points.
 
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Reply: 3.1
From: Andrew S


The last valuation I had (was also my first) for lending purposes was just over 12 months ago. Valuation on my home came in at exactly the figure I had put on the loan application (Hmmm?) and on the IP we purchased it was the purchase price. (I reckon we bought at about 20K below market value and other sales in the area shortly after seemed to confirm that). It left me wondering just how much work the valuers do. It seemed that with our home at least, the (conservative) figure I quoted was accepted without question. Next time I will definitely be doing the research first and produce a more realistic figure with supporting evidence. It annoys me a bit that you need to do that even when you are paying for a valuation. Isn't that why you are paying them to do it??? I guess this only happens in the ideal world!

Mr Jolly
(aka Andrew S - there are too many Andrews)
 
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Reply: 4
From: Rosemary McKenzie


This is so true!! We had a valuer recently through one of our IPs and the dog jumped all over her. She valued the place at $12K less than it had been valued 18mths ago. This was despite a very "rising market" and indicative sales in the SAME STREET!

We went back to the previous valuer who put it up $18K instead of down.
 
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