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Luisa Manera and Eddy Rostirolla - We have known Ann from Rental Trends for approximately four years. We originally engaged her services to manage one of our Brisbane based investment properties We have always found Ann to be very reliable. The property management division has always run very smoothly to the point where we have no concerns. Ann has always good tenants to lease our property and we are always very confident in relying on...
PROPERTY VALUATIONS: WHAT INVESTORS NEED TO KNOW

Astute property investors should think more like a property valuer and approach each property transaction rationally, without emotion and armed with as much information as possible. Some of the most common questions about property valuations focus on how to ensure the best valuation possible and how they differ from a property appraisal. |
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These questions are usually asked by someone who has been disappointed by a past experience where they had put a lot of effort into the interior design, only to find the valuation price didn’t reflect what they or their real estate agent considered the market price. Property valuation versus appraisal Investors and home owners are sometimes surprised by the substantial difference between a market appraisal and evaluation. Real estate agents provide property appraisals using their knowledge of sales in your neighbouring area and their professional experience in order to gain your listing. It’s an agent’s job to get the most for the seller of a property through marketing and sales techniques. However, a property valuation is independent of an agenda and based on facts. It is a key part of the bank’s lending process along with other elements like employment and credit history, or your ability to pay back to the loan. It is definitely not the job of a valuation professional to speculate when determining the value of a property. |
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Guided by industry standards While it’s not an exact science, a good valuer usually provides a valuation based on recent sales of similar properties, plus other relevant information. Valuers are guided by industry standards that start with the legal concept of market value that is “the estimated amount for which a property should exchange on the date of valuation between a winning buyer and a winning seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion”. Assessment process It is best to find a valuer who is experienced and knowledgeable about the area you are considering investing in or where your property is located. This is particularly relevant if you are investing interstate. In determining the value of a property, the valuation expert will visit the property and look at numerous things including land and building size, construction details like the type of materials used in construction (for example, fibro or brick), the location, other sales in the area, the condition of the existing dwelling, and ancillary details like pools, garages and off-street parking. In the case of off-the-plan, the relevant information doesn’t come from the glossy sales brochure but rather from the builder’s plans and tender. Also, finding out what and when they are going to build and any additional gestures. It’s worth remembering that there is no point in indicating to a valuation professional that you intend to make improvements because assessments are made “as at today”. Simple ways to add value to your property Marble bench tops, Italian appliances and the latest light fixtures will cost you a lot, but may not necessarily translate to a higher valuation. The following are some simple tips that will work in your favour.
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Keeping emotions in check Attending an auction with a professional valuation obtained independently and without prejudice is a great way to ensure that you don’t get caught up with the excitement and overstretch yourself on the day. A bank will make their decision using their valuation, but knowing what you should be paying is a great way to take the emotion out of any investment decision and particularly useful as a practical negotiating tool. If you are thinking of investing in an area you don’t know anything about, like interstate, then it’s best to obtain an independent valuation from a professional that is located near that property prior to entering into any negotiations. That’s because they know the area and they know that market. Ways to think like a property valuer when investing in property Look for:
Changes in your contact information It is always difficult to remember who you have advised of your change of address, or change of telephone number, or email address. To assist in the effective management of your investment property, please ensure you advise your agent of your change of contact details. This way, they can communicate with you effectively and in a timely manner, should they need to contact you regarding any aspect of your investment property.
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