Is it really possible to get “better” mortgage valuations than what you would get from typical industry-defined guidelines for mortgage valuations? Property valuers generally value property based on the prevailing market conditions at the time of the inspection so perhaps looking for a better or higher valuation might seem like “cheating” the system. Not, however, if you consider the fact that industry valuations are generally a little “conservative”.
Typical industry valuations are generally pegged on the price that a bank could reasonably achieve if it’s selling the property after a buyer default and the lender needs to repossess the property. So if you are a seller, you are most likely going to get a slightly lower valuation for your property. But is there anything you can do about it?
Order your own valuation
Where you are seeing a valuer that is consistently conservative in their valuations, then you may need to order your own property valuation to get a second opinion. Use your own and present your position based on your own independent valuation. Discuss the various elements of your valuation that will help tilt the odds in your favor with your financier. Ordering your own valuation does not always mean you will call the shots on the final value of the property but it gives you a strong negotiating position.
Complete all the renovations
If you are going to carry out any renovations that should boost the value of your property, make sure you complete all this in time before the survey. The property valuer will not factor in your renovation plans; they will assess your building based on what they observe at the time of the survey. So the “I am going to…” are never going to work. Minor renovations such as painting the house can wait but the major renovations such as bathroom and kitchen remodeling must be finished ahead of time.
Clean up the property
While most valuers expect a lived-in property, it doesn’t hurt to do a little tidying up before the assessment. The property valuers will assess the property when it is vacant and generally expect it to have been cleaned by the time they are coming for an assessment. A beautifully presented home can give a good impression that the property is well maintained and that could lead to fairer assessment and valuation.
Make a strong case
You can’t sway an independent and professional valuer but you can vouch for your property to create an overall great impression. What are some of the hidden quirks and features? Bring these out during the evaluation and they might just tilt the price in your favor. If you think your property is worth a certain amount, talk to the valuer and let them know why you think so. Just try to put in a favorable word and back it up with some evidence.
List recent improvements
If you have made any recent improvements on your property, enumerate them to make the work easier for the property valuer. You can even go further and provide additional details about the improvements such as the project specs, the cost of the improvements, the building or renovation contracts and so forth. This kind of information is likely to add some weight to your application.
Be very honest about every aspect of your property improvements and features. Valuers are likely to be quite wary when they find out you have been lying about certain obvious details about your property. However, an honest approach is always rewarded and is likely to create a favorable impression in the mind of the valuer. If you are honest, they are less likely to be defensive in their approach.