Tips for choosing a valuer
So you know you require a property valuer but not sure what questions you should be asking? Here are a few tips to ensure you make the right choice.
SOMETIMES YOU GET WHAT YOU PAY FOR
Many valuation firms, particularly the larger ones, focus on large volumes of work with lower margins. Whilst this could save you a few hundred dollars at the beginning, obtaining a valuation which proves to be inaccurate can be much more costly in the long run. Confirm a turnaround time in writing
Most valuation firms obtain a vast majority of their business from lending institutions and as such, this work is prioritised. If you are a private client, there is a good chance your job will be pushed to the bottom of the pile and could take much longer than you had thought. Be sure to confirm the expected turnaround time so you can use this as a base of comparison when looking at the different quotes.
MAKE SURE YOU UNDERSTAND THE PURPOSE OF THE VALUATION
There are a multitude of reasons why a valuation might be needed and the valuation report may be different depending on what it is going to be used for. For example, a valuation for tax can be quite basic whereas if the valuation is for family law court then it must be much more detailed. This will all have an impact on the quote and if a report is incorrectly addressed then you may not be able to use it.
IS THE VALUER APPROPRIATELY LICENSED?
Recent changes to the licensing system in WA means that valuers with only 1 year of experience can obtain RPV (Residential Property Valuer) status which allows them to complete valuations of basic residential property only. You should ensure that the valuer is suitably qualified for the property type you have.
A valuer may become fully licensed after only two years of experience, so it is also advisable to ask how many years of experience the valuer has as there is a shortage of well experienced valuers in the industry.
IS THE VALUER FAMILIAR WITH THE LOCATION OF YOUR PROPERTY?
A skilled valuer should be able to complete all appropriate research and interpret market evidence diligently; however if they are not familiar with the location then there is the potential to miss important nuances of the area which could lead to an inaccurate valuation.
WILL THE VALUER’S REPORT BE ACCEPTED BY YOUR LENDER?
If you are obtaining a valuation for mortgage finance purposes you should check with your lender as to which valuation companies are on their panel of accepted valuers. Most banks will also insist on organising the valuation themselves rather than letting the client provide one.