Im needing to get a bank evaluation as im going to use my current home as equity in a new home loan. Are there things I can do to maximise the bank eval ? How do they work out a value of my home ? and would this more likely be less or more than what I could get if I were to sell the house ?
From: Nathan
Location: Adelaide
1 comment:
Bank Valuers are no different to any person, they are affected by opinion and they generally are keen to please. It is a good idea to be upfront with what you expect the valuation to come up to and give your reasons prior to the valuer locking in on a price.
It is also imperative the property is presented well, and first impressions are really important.
Thje valuation is based on similar sales or “comparative sales”, and it is often quite subjective but in an informed way.
Bank valuations are often conservative and this is driven by the valuer wanting to manage his/her exposure to litigation from the Bank, you will rarely get sued for valuing conservatively but will often be sued for being too high in a valuation. It is about risk management for the valuer.
A valuer will be more influenced by the person who engages the work than by a third party and although in theory the value is the value, life is not that simple and there are variations in perception of values.
Regards
Anthony
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