3 Things You Might Be Doing Wrong On Valuation Day
Despite the thoughts which some experienced investors might harbour in their hearts – valuers are people too!
They’re not “out to get you” as an investor, they’re simply doing their jobs to the best of their abilities, often getting squeezed by various parties in the process.
No matter what your opinion of valuers and their product, you are not entirely helpless on valuation day – you have options. If you choose not to consider those options, you’ll likely wonder what difference they could have made in your valuation. $20 – $50K? It’s possible and that can mean a BIG difference to your future property investing plans! So here are 3 tips to ensure you get the highest valuation possible.
1. Failing to stage your property
Yeah, I know. You’re probably rolling your eyes at the moment and thinking “duh” everyone knows staging property is important, but do we all do it?
If you’ve got a tenant who is, generously speaking not “house proud”, it would certainly be worth your effort to get them out of the house on valuation day (send them to a spa or something), have the house properly done up (or do it yourself).
Even though valuers are paid to consider the structure of the home, and they are bound by what’s happening in the market, they can fall in love with the property in the same way a buyer can. A well staged home could influence the valuer towards the higher end of the property value range. Hmm…fresh Cinnabons in the oven anyone???
2. Picking horrendous colours
Purple wallpaper, green carpet…’nuff said. Seriously though, when choosing colours consider what the majority might like. Everyone’s different, so pick neutral, light or ordinary colours which don’t detract from the home’s structural beauty.
3. Failing to understand what the market wants
Renovating to sell? Before picking up a hammer or a paintbrush, run by new developments in your area. Check out the display homes and take note of what they’re doing – they’re obviously trying to sell these homes, so they’ve done some research to appeal to the masses.
Next, take a look at the beautiful, prestige homes in your area and copy what they’ve done at a cheaper cost. Bada bing!
Realise this – yes it’s common knowledge that valuations are coming in tough – however you should be doing everything in your power to ensure you get a top dollar valuation – as it could mean the difference between you being able to access equity or not and being able to move forward in your investing journey. Additionally this video offers some great tips on increasing value and the art of the sale!
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The following article has been supplied by the ATO containing tips related to your investment property.
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