adpapa Editor
1 September 2020
The key to enjoy a favourable Perth property appraisal is to get personally involved in the process. If you get involved in the process, there is a greater likelihood that you will also get an accurate and fair home value. To help you in the process, here are five practical tips that you should always consider.
Look for an Appraiser Who Knows the Perth Property Market
You should take note that the entire real estate market remains volatile. So you have to ask your mortgage broker if the assigned appraiser knows the local market thoroughly. This is very important to make sure that the appraiser understands current local trends and valuations. You have to remember that the real estate industry has become highly localised today.
Be On-site During the Appraisal
It is very important to be on-site during the appraisal. If you can not make it, then make sure that your real estate broker would be at the place being appraised. If you are present, you will be able to answer all the questions of the appraiser or clarify matters concerning the valuation of the property. This is also a good way to ensure that the appraisal will not be done perfunctorily.
Prepare the Sales Contract and Show It to the Appraiser
Buyers in the homes market are having a field day today. You have to expect a lot of hard bargaining. It is customary nowadays for sellers to include numerous deals and add-ons to the properties. It is very important therefore for the appraiser to know everything about the special provisions that have been included in the sales contract. Show the contract so that the listed provisions like home theaters, special furniture, and home equipment can be considered in the valuation of the home.
Make Sure You Highlight the Perks of the Property
Remember that the real estate market has become more localised. This means a property’s valuation can be influenced by the quality of the surrounding neighbourhoods. The desirability of the place would be fairly dependent on the local economy, local taxation policies, and available services and institutions nearby. You have to make sure that the appraiser is aware of the perks of your property relative to its location.
Appraise Your Own Home
Lastly, you can try to make your own Perth property appraisal of your home. You can research about property values in your area and know the different factors that are being considered for appraising a home. This will minimise the likelihood of getting a highly devalued appraisal.
A lot of times, you will hear and see that people who have experienced buying a home, or real estate investors stressed on having a contingency when it comes to appraisal results. The reason behind that is because appraisal result can be a deal breaker for the buyer and the seller specifically when the result is not what the buyer have hoped for.
If there’s a low appraisal result that means that the buyer will still get the loan, however, the buyer will not get the amount that he or she is asking for; the amount that the buyer will get will be lower than what the buyer asked for. Here are a few ways that you can do when faced with low appraisal result:
1. Check the other similar houses in the area – Once you received a low appraisal result, work on checking similar houses in the area and check their price range if it is the same or almost the same with the house that you want to buy. If the answer and yes, run a comparison analysis to get data and submit a request for another house appraisal. Attached your findings on the comparison analysis you have worked on your request for a second Perth property appraisal.
Second appraisal requests can also eliminate some mistakes that the first appraiser might have omitted. There might also be a chance that the first appraiser made a mistake on the report however meant to give a different appraisal result. The only thing that you also need to be reminded about second appraisal requests, is that you again need to pay for it. So just make sure you also have a budget for the bank loan as well.
2. Talk to the seller about the price – If checking on similar houses in the area and if you found out that the price range is not similar and the house you want to buy seemed overpriced, then talk to the seller and renegotiate the price. Show the seller the comparison analysis that you did as well as the result of the appraisal and make the seller realise that it would be hard to sell an overpriced property especially, if every appraisal result that any buyer would have is a low Perth property appraisal result.
The seller and the seller’s agent might not also be aware that they have put a wrong price on the house. It rarely happens however it still happens, and showing your comparison analysis and sharing the appraisal result might and talking to the seller might correct this mistake.
3. Look for a different lender in the same area – You also have the option to look for another lender in the area. However, you need to work on this fast because you are faced with two concerning things:
The seller will not wait for a long time for you to get another lender, each day that has passed is a day that the seller loses a potential buyer that might have a better offer than you. The property is taken off of the market so no other buyers can see and make an offer to the house.
You again will need money to pay the home appraisal and if the first appraisal is still not what you have hoped for, asking for a second appraisal on the new lender, means another out of pocket expense for you.
4. Pay the difference – Instead of thinking of setting money for several appraisals, why not save money and work on being prepared to pay the difference if you really want to buy the house and not look for another property.
