When getting your property revalued what can you do to get the highest valuation possible?
Speaker 1: So the first questions from [Sergi 00:00:04] asking, what’s the best way to ensure they get the highest revaluation for their properties to unlock equity?
Speaker 2: That’s an awesome questions.
It’s funny because I literally just got emailed from Emma, one of my clients … Is Emma Bowman, Emma one of yours as well, that you referred? I think she’s bought a couple of properties now, maybe three?
Speaker 1: I’m not sure. I’d have to look it up.
Speaker 2: But, anyway, like she just sent me an email, two seconds ago. She’s revaluing two of the properties we bought 12 months ago.
And so, I used to think it was just a passing thing, whatever bank goes out to value it, is the valuation and you just role with with.
But, what I’ve learned, in the last couple of years is, that you can actually … Like a valuer has to legally take in the information that you provide to them.
So, for Emma I just jumped into IP Data which, is where all of the sales history data is. But, if you’re not paying for that software you can find the same stuff on the sold section of realestate.com for free.
And, what I did is I looked at comparable properties in terms of floor size, land size, position in the suburb, quality of the streets and basically hand selected three or four of the properties that have sold for a premium that I think are comparable in the last six months.
And then we compiled that data into a one page report with links, with photos, with direct sales dates and prices and then we also compiled another little one pager just with; here is the condition of the property when we bought it and here’s some of the little things that we’ve done to add a bit of value, because she has done a little bit of cosmetic renovation on each of the properties.
And so that is just a simple little two pager and we just forward it through to the valuer along with an appraisal from three local real estate agents in the area. The three top performers saying; this is what it could sell for in the current market.
And, you know, those three or four pages will probably mean that she gets a 30 to 40 grand valuation above what a bank would do for her right now.
Speaker 1: Well, that’s the thing, I know that some valuers tend to be conservative.
But, if you’re saying that they’ve got to take in the information that you give to them. Like giving them a highlight reel, basically, of the area as well as what you’ve done to improve the property can … Like, it’s definitely not going to hurt your chances, right? It’s definitely going to help you.
Speaker 2: Well, in the current conditions all valuers are [inaudible 00:02:17] because our [inaudible 00:02:18] is just, sort of, another thing they’ve done very recently is told the valuers to devalue stuff down and banks are being way more conservative. So, you really need to be in with a fighting chance.
Like, I’ve seen properties in Sydney worth a million dollars that have been revalued at 800k at the moment. I’ve seen properties in Brisbane that are worth 600k being valued at 400 grand and then the same properties from a different bank going in valued at 600k and a million dollars. It’s just all over the shop right now, depending on where the banks books are balanced.
It’s got nothing to do with the true market value of the property.
Speaker 1: And, do you think there’s anything else, apart from creating that report, that people can do? Would you advise cosmetic renovations just before a revaluation or anything like that?
Speaker 2: Yeah, I think there’s two times to cosmetically renovate. Just before you sell or just before you revalue.
So, at the end of the day the valuer has to take into consideration a few things. One is the change in [median 00:03:18] price points in the suburb. So, lets say you bought a property 12 months ago. You bought it for five percent below market value. The markets increased in value by seven percent in that 12 month period. And, literally the month before you get it revalued, you’ve gone and repainted, carpeted. Replaced lights, curtains, tidied up the kitchen and bathroom and the front yard.
What I would do is present photo’s of the property before cleaning it up and photo’s after. And then I would also present a cost breakdown of exactly what I spent on the property for each of those items.
And then, I would show them that the market had moved by seven percent based on RP data’s. Data which can be found online for free. And then I would also provide them with the comparable properties plus the information from the agents and all of those things really stuck out.
Speaker 1: Ja, it could make a huge difference.
Hey guys, I hope that you enjoyed the answer to this question which, came from my live Q and A episode with Ben, on YouTube. We will be doing more of these in the future.
If you want to check out Ben then he is offering free strategy sessions to On Property listeners.
To find out more about that, go to on property dot com dot au forward slash session, and you can see all the details over there.
That’s it for today and until next time, stay positive.