Greg Sugars explains what determines the final value of your property and debunks the myth surrounding valuation.
Valuations are not an exact science, rather an educated interpretation of the characteristic of the property and market conditions at a given point in time. Often a valuer is challenged on how he/she arrived at the figure.
In most cases the point of difference will be the interpretation of market data. For example, on many occasion a vendor has based their own estimation of value based on the "asking prices" in their neighbourhood. The valuer will only analyse actual sales of property where a transaction has actually occurred.
A common question received by valuers from property owners or prospective property owners is "What if I believe the banks valuation is incorrect?"A number of lenders, when extending mortgage funds, have drifted away from the use of full valuations and, in some cases, the figure they use may be based on a computer statistical model or a desktop assessment.
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