When looking at a property, I always approach my bank or broker and ask them to recommend a valuer. This is something you should do as well.
In property investing, it’s a great idea to find a good valuer who can help you determine if a property is worth your money.
However, you shouldn’t just leave it to the bank or broker to talk to the valuer. You’ll want to speak directly to them as well.
This can have many benefits and ensure that you get all the right information about a property.
Let’s see what you can do if you talk to your valuer directly.
- Negotiate the Valuation Quota
Many valuers are quite busy. Unless you speak with them directly, it’s hard to know the exact turnaround time for the valuation. As a result, you might waste a lot of time and miss some lucrative opportunities.
What’s more, the fee is often very high. They’ll jack it up and you won’t be able to do much about it if you have a broker as a middleman.
But if you talk directly to the valuer, you may be able to get everything done more quickly and at a lower price.
For example, I once managed to slash in half a valuation quote of nearly $5,500. After a job cancellation, the valuer told me he could get it all done next week if I could pay him the same day.
Not only did I save more than $2,000, I also got the valuation done much sooner.
- Find Out Recent Sales
Recent sales are among the most critical factors in valuation. Their cap rates show you if a property is worth the asking price or if you should negotiate further.
If you speak to your valuer, you can ask them about recent sales in your area and find out if you should put any more time into considering the intended property.
For example, let’s say that the general cap rates are 8.5%. You can see if that property is anywhere close.
Again, this is something you likely won’t be able to find out from a broker.
The valuer has better and more recent information, so get the data from a reliable source.
- Update the Valuer’s System
Every sale in the area can affect the overall cap rate. However, some of the sales might not get into the valuer’s system.
For instance, the exchange might have happened, but not the settlement. This would prevent the valuer from getting all the data.
If you call the valuer, you can inform them of a sale that went through in your area and for how much. They can comment on this and take it into account when doing the valuation.
This is why you must always ask your valuer to call you before they come to the final number. Recent sales can have a significant impact on the asking price, saving you a lot of money.
Of course, these are just some of the things you can discuss with your valuer. There’s a lot more you can find out about a property that will help you make an informed decision.
Always get in touch with your valuer. And don’t hesitate to ask whatever questions you may have in mind.
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