The value of our investment properties is top of mind right now. With lending criteria becoming tighter, getting the right valuation can be the difference between staying where you are and growing your property investment portfolio.

A valuation is the professional opinion of the value of your property. It is not an exact science. However for the property investor it is integral to the direction of their property investment and finance strategy.

Having said all this, I find it incredible that the importance of getting the right property valuation is so commonly overlooked.
Preparing to have a property valued should be no different to preparing to sell your property. It is effectively an “open house” inspection where the opinion of the valuer will determine your outcomeValuers are just like the rest of us, humans looking at a property and assessing the value in their opinion. You and your property are also potentially just one of many on the ’sheet’ for the valuer.

You can add value to their experience by:

  • Make sure a knowledgeable person is on hand for the inspection
  • Be on time if you have to meet them on site
  • Helping them out with easy access
  • Presenting the home in a neat and tidy way
  • Keep pets and other undesirables out of the way
  • A professional documentation package – see below

A good property valuer will take about 15-30 minutes to look around. Always show respect and courtesy. Their work starts with the onsite inspection – they will look in detail at your property – take measurements and note features. They will then go back and stack your property up against a market analysis report.

The Valuer Package:

Putting together a professional documentation package speaks volumes. The package will help your property stand out form the others they may have surveyed that day. Some things to include:

  • House plans, surveys, lease or development conditions
  • Your estimated value – suburb median house prices, movements over 6-12 months
  • Projected capital growth – any positive property news on your suburb or locality
  • 3-5 comparable sales in your area within 10% above and below your estimate and within the last 6 months
  • Property details – bedrooms, garages, other features
  • Scope of improvements – if undertaken – be comprehensive inside and out – use trades costs
  • Get 1-3 agents to come and appraise the property for market value for selling and fair market rental appraisal. Use this information to your best advantage

Presentation Tips:

  • A clean house
  • Open blinds and let in natural light
  • Lights on in the rooms
  • Floors, paths and halls clean and clear
  • Kitchen and Bathrooms clean
  • De-clutter
  • Lawns and gardens tidy

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