Property valuation Canberra has today is always an integral part of any property purchase not just in the ACT but in the whole of Australia and globally. If you are planning to buy or sell property, it is very important to understand how these valuations work and how they are going to eventually affect your property investments.
Here are some important things that you can keep in mind when it comes to property valuation in Canberra:
Bank versus Market Evaluation
The first thing that you need to determine when it comes to Canberra property valuation is whether it is a bank or market valuation. The bank valuation is generally the value against which the lenders are willing to lend you money. On the other hand, the market valuation is the value at a particular valuation time for which the property should exchange between willing buyer and willing seller.
Bank and Market Valuation are not always similar
It is reasonable to assume that the banks should lend money based on the market value agreed upon between the buyer and seller but this is not always the case. There are cases in which the property valuation Canberra market offers is different from the bank value.
Differences in the property valuation can occur for a number of reasons. Banks, for example, are likely to opt for conservative values when it comes to property valuations while seller will be trying to maximize value. Banks prefer this in order to avoid incurring losses in case of foreclosures where they have dispose of the property quickly in order to recover the cost of selling. Additionally, they have to hedge against any potential downward market spiral. Check out MANAGEme Property Rentals
When it comes bank valuations for the property, the valuers are likely to be more conservative because the banks could hold them liable in the event of a financial loss. There are lots of instances where the valuation companies are sued banks in case the financial institution feels the property was over-valued. When it comes to property valuations, it is always important to keep in mind that the lender could override your current valuation by your valuer.
A safe option would be to find property valuation Canberra has that has considerable experience in property valuations in the area and which can offer you a fairly accurate valuation for the property.
What if you are unsatisfied with bank valuation?
Due to its very conservative nature, it is possible there might be buyers or sellers who will be dissatisfied with the property valuation. In that case, you can appeal it and place a request for a re-valuation of the property. When placing this kind of request, you also need to provide evidence to support request like the current values of comparable properties.
Another option that you can consider in case a particular bank evaluation doesn’t satisfy your expectations is to cancel your current application and try out a new application.
These are some of the important points that you ought to keep in mind when it comes to property valuation Canberra offers. It isn’t always going to be straightforward but there are plenty of ways in which you can make it work to your favour. It is always good to keep your options open.