Property valuations are a crucial step in determining the market value of your home—especially when selling, refinancing, or securing a loan. Factors like location, condition and comparable sales come under the scrutiny of a Certified Practicing Valuer, who then provides an objective estimate of the property’s likely pricing in the current market.
Ensuring your property is presented in the best possible light can significantly influence final figures. However, navigating the intricacies of a valuation process can be super overwhelming. This is where enlisting the help of a trusted buyer’s agent comes in handy.
Recently, Lauren Jones Buyers Agency met with Sacha Millar of WBP Group Property Valuations, and she shared 9 top tips on how to maximise the outcome of your property valuation:
Topics in this article:
1. Tidy and Declutter
First impressions count a great deal—even for valuers. Valuers are trained to look through the mess and value the bricks and mortar, but a well-kept, spring-cleaned home allows them to focus on the property’s true features, rather than its contents. Clean, organised properties not only appear more spacious and appealing, but also suggest good maintenance.
Additionally, well-presented homes yield a more inviting atmosphere. Modest efforts like fresh paint, thoughtful décor, manicured lawns, and minor repairs further enhance the overall impression. This will prompt the valuer to envision its full potential, thus positively skewing their perceived value of the property.
2. Provide Floor Plans with Dimensions
By having updated floor plans and accurate room dimensions on hand, you can help the valuer understand the full scope of your property. The valuer will externally measure the property, so providing floor plans with dimensions will ensure the report is more accurate and that every square metre of the property is taken into consideration. Usable space, including features like storage areas, outdoor spaces, and extensions, should all be accounted for. Detailed floor plans also highlight the flow and functionality of the layout, allowing the valuer to see how well the space is used by occupants.
3. Estimate the Value and Provide Recent Sales Data
When completing a valuation for the bank, the valuer is provided with an estimate of value from the lender. The valuer completes much of the report, researching sales in this price range, before visiting the property. Sometimes the valuer is provided with an estimate from previous lending. This doesn’t take into consideration recent renovations. So, the valuer may be preparing his research around $800k, when the current estimate is $1.4m. This will create delays as the valuer needs to complete more research after the visit to the property.
Prior to your valuation, estimate your home’s value based on comparable properties in your area. Gather three recent sales of similar properties, paying close attention to key factors like size, features, condition, and proximity to amenities. Be prepared to show how your property compares in terms of these aspects, highlighting any upgrades or unique features that might add value, such as a renovated kitchen, a larger lot, or solar panels.
This information not only provides the valuer with a clear context but can also help justify a higher valuation if your property offers advantages that the comparable properties lack. Presenting these details upfront can support a well-reasoned final figure, particularly if your home has distinguishing characteristics that set it apart in the local market.
4. Highlight Key Features
Does your home have unique attributes like a security system, a hidden wine cellar, or eco-friendly installations? These special features can significantly enhance your property’s appeal and value, so it’s crucial to highlight them during the inspection.
Whether it’s high-tech home automation, energy-efficient solar panels, a custom-designed outdoor entertaining area, or luxury fixtures, each feature contributes to the overall impression of quality and desirability. By drawing attention to these upgrades, you ensure the valuer takes them into account.
Even less obvious features, such as soundproofing, underfloor heating, or smart irrigation systems, can differentiate your home from others, potentially increasing its valuation by demonstrating both functionality and future savings for potential buyers.
5. Renovation Activity
Timing is everything when it comes to valuations. If you have renovation plans, make sure major work is complete before the valuer arrives. All of it. An unfinished renovation can drastically reduce the value, as valuers can only assess the property in its current state and what it would sell for in the open market in this condition. For instance, a property without a functional kitchen could see its value drop by tens of thousands of dollars and impact your ability to secure financing.
Sacha Millar explains that in one case, this exact scenario jeopardised a valuation.
Millar shares, “We had been asked to complete a bank valuation for a loan for the owner to start a renovation. The inspection was booked for 9am. When the valuer arrived, there were tradies at the premises who had just gutted the kitchen in preparation for the renovation. This meant the valuation was nearly $50,000 less than it was two hours earlier!”
Valuers need to consider what someone would pay for a property in its current state. For a property to be in an uninhabitable condition—i.e. without a functioning kitchen—than its value is significantly lower, and valuers are also unable to provide a rental amount in their report. This is important because this is something the lender considers when assessing the loan request.
Millar continues, “In order to proceed with the loan, the lender asked us to complete an ‘as if complete’ valuation on the property…However, this was a complicated and delayed process.”
6. Best Conditions for a Valuation
The day of the valuation should reflect your home at its best. To make a strong first impression, consider scheduling the valuation when the property is in peak condition—thoroughly cleaned, freshly landscaped, and free of any visible issues that could detract from its appeal.
Address any temporary problems such as leaks, peeling paint, or unfinished repairs beforehand, as these can negatively impact the valuer’s perception of the property’s upkeep and overall condition. Ensure that both the interior and exterior are presented in a well-maintained state, with attention to small details like clean windows, tidy rooms, and well-kept outdoor spaces.
Even something as simple as enhancing natural light can create a more inviting atmosphere, helping to showcase your home’s full potential and value during the inspection.
7. Manage Pets and Other External Factors
While pets may be family members, they can sometimes interfere with a smooth valuation process. If you have pets, ensure they are restrained during the inspection to avoid any disruptions or safety concerns.
Sacha Millar shares a second valuation story to emphasise the importance of removing this external factor: “One of our valuers was at an inspection and needed to inspect the rear and sides of the house. When told that there were two dogs present, the valuer requested that the dogs be restrained.”
Unfortunately, one of the dogs broke free.
“As the valuer was walking towards the side of the house, the larger dog bit him on the bottom [then] lunged forward and bit the valuer’s arm. The valuer realised that his shirt sleeve was torn and bloodied, so excused himself and left the property. He returned the following day to complete the valuation.”
This incident highlights the critical importance of ensuring a safe and controlled environment for property valuations. Unrestrained pets can not only disrupt the inspection process but may also leave a lasting negative impression on the valuer.
Millar advised the number of dog attacks has doubled recently, with the reasoning thought to be a generation of Covid puppies who may not have been socialised as well as in the past.
8. Discuss Industry Standards and Legal Implications
Property valuers are required to adhere to the API’s Standing Instructions when completing valuations for mortgage security purposes for the bank. This document was created by the Australian Property Institute in conjunction with the Australian Banking and Finance Industry and it provides the guidelines which valuers must follow. It's important to be aware of Australian industry standards, especially when disputing a valuation, as this knowledge can strengthen your position. Valuers adhere to strict professional guidelines, so ensuring that settlement conditions align with your contract is essential to avoid complications. If you believe the valuation is not in line with your expectations, be prepared to present evidence such as recent comparable sales, property upgrades, or unique features that may not have been fully considered. Providing this information can help justify your dispute and prompt a review.
Keep in mind that valuers are subject to scrutiny, and banks often investigate if valuations are frequently amended, as it can signal inconsistencies or inaccuracies. This adds pressure on valuers to be precise in their assessments, making it even more critical to ensure that all property details are clearly communicated from the outset.
9. Finalising the Figure
After the valuation inspection, the valuer will provide a final figure that reflects the current market conditions, the state of your property, and comparable sales. If you believe the valuation is too low, you can dispute it, but only if you have strong evidence to support a higher valuation. Demonstrating why comparable properties should support a higher figure is essential in this case.
Maximising the outcome of your property valuation involves preparation, timing, and providing accurate information.
By presenting your home in its best condition, finishing any renovations, and providing valuable data to support your property’s value, you can help the valuer arrive at a figure that best reflects your home’s true worth. And to help yourself navigate the process, consider enlisting the support of a buyer’s agent. Ultimately, it is their two cents that will save you time, money, and unnecessary stress.
