In this article we look at some of the things you can do to maximise the valuation of your property, but firstly, why is this important?
I'm sure it's obvious but there are multiple reasons you may be valuing a property which are, sale of the property, negotiate the purchase price and the most common one, lending. When you borrow against a property, the value is a one of the key elements to the amount you can borrow. Surveyors usually inspect the property (although AVMs are becoming more popular) and conduct a red book valuation.
A red book valuation is an important step in determining the market value of an investment residential property. A high valuation can mean a higher sale price or a larger loan amount, while a low valuation can impact your ability to sell or refinance the property. Here are the top 10 tips to help you maximise the outcome of a red book valuation on an investment residential property:
- Keep the property in good condition: A well-maintained property is more likely to receive a higher valuation than one that is in poor condition. Make sure to keep the property clean and well-presented, and address any repairs or maintenance issues before the valuation.
- Improve the property’s curb appeal: The first impression a valuer gets of the property will have a big impact on the valuation. Make sure the property looks attractive from the street by maintaining the lawn, trimming hedges, and keeping the exterior clean and fresh.
- Make sure the property is well-lit: Good lighting can make a big difference to the overall feel of a property. Make sure all lights are working and that there is plenty of natural light coming in.
- Show off any unique features: If the property has any unique features such as a fireplace, spa or large garden, make sure to highlight them to the valuer.
- Provide a detailed history of the property: A valuer will be more confident in their valuation if they know the property’s history. Provide any relevant information such as previous sales, renovation or extension works.
- Provide a detailed list of recent repairs and upgrades: If you have recently made any repairs or upgrades to the property, make sure to provide a detailed list of these to the valuer.
- Provide a detailed list of the property’s features: Make sure to provide a detailed list of all the property’s features such as the number of bedrooms, bathrooms, and living areas.
- Provide a detailed list of any additional features: If the property has any additional features such as an annex, garage or air-conditioning, make sure to provide a detailed list of these to the valuer.
- Provide a detailed list of any comparable sales: If there have been any recent sales of similar properties in the area, make sure to provide this information to the valuer.
- Understand the purpose of the valuation: It's important to understand why you need a red book valuation and what it will be used for. If the valuation is for mortgage lending, then the lender will typically use a more conservative approach and may use a different method than if it was for a sale. Knowing the purpose will help you to better prepare for the valuation and provide relevant information that aligns with the intended use.
By following these tips, you can maximise the outcome of a red book valuation on your investment residential property. By presenting the property in the best possible light and providing detailed information to the valuer, you can increase the chances of getting a high valuation which will be beneficial for your investment.