VALUATION BENEFITS:

Why do I need a valuation?

Most people understand the importance of a pest inspection and building inspection and your solicitor would get both, your solicitor may also get a strata report, Title and DP search etc.

Banks, financial institution and other lenders are more concerned with the value, and will get thier own valuation, but many people put thier trust in the Agents opinion when it comes to value.

Agents are not qualified valuers, they are in the business of marketing and act for the vendor. Sale price is not always market value. 

The bank, financial institution and other lenders valuations, are for the use only of the lender and its mortgage insurer for specific 'mortgage security purposes' only, valid as at the valuation date. No other third party should at any time rely on a valuation not specifically tailored to their purpose, including borrowers or purchasers.   

An independent valuation requested by yourself, is a valuation report specifically tailored to your needs, offering you a figure or figures at a specific point in time for your specific purpose. 

Why get a valuation:

Property is often the largest single purchases an individual will make.

Weather it be a purchase, a sale, settlement or refinance, without an accurate valuation by an independent registered valuer acting on your behalf, you could lose thousands if not hundreds of thousands.

As an example:

(Purchase): A property on the market at $850,000 is purchased at $820,000, what the purchaser believes is a fair price or good buy, on an interest rate at 7.5% over 25 years. The financial institution or lender may Value the property for there mortgage insures at $820,000 at the date of valuation or purchase based on purchase price, and premium interest at that time by other emotional potential purchasers.

(True Market Value): Let’s say the true market value of the property at the date of purchase is $790,000, and now two years later interest rates have risen to 9%, forcing the market to fall say just 5%.

(Outcome): Assuming you are now forced to sell, as you can see below the outcome of such movements can be catastrophic.

Loan: $820,000 Rate: 7.5% Weekly Payments: $1,397.26      

Loan: $820,000 Rate: 9% Weekly Payments: $1,586.80

Monthly loan repayment increase: $821.34

Purchase price: $820,000

Sale Price: $750,000

Your loss including loan repayments over the two years: $70,000 on the value of the property and $19,712.16 on loan re-payments, a total loss of $89,712.16  

The above figures do not include Agents fees, Advertising, Solicitors fees and Government charges. This is just an example of losses that could have been avoided with an initial independent Valuation.

Don’t rely on someone else's valuation, the lenders valuations are for the use only of the lender.

An independent valuation for piece of mind can cost as little as $180 and can save you thousands or more.