Nothing could be more disheartening than spending your hard-earned cash only for the valuation to go wrong. But what can you do if something goes wrong? Are there any remedies? We take a look at some of the actions you could consider taking as well as any potential solutions.
1. When an expert undervalues the property
Undervaluing occurs when the stated value is lower than the real value of the property. Such a move could often compromise your standing with a lender. Unless they capture the right figure, there is a chance that you could get a lesser mortgage.
Often, this value will depend on the sales of similar properties within the region. The current condition of your house will also be instructive of the final cost. The expert needs to revise any such figure before concluding. If they fail to do so, the property will be deemed undervalued.
Upon undervaluation, you will need to appeal against the valuation. Whereas they are successful, getting the best property valuation company in Brisbane could be helpful. From this, it will be easier for you to request a more comprehensive valuation. You will witness that this will only happen if either party is ready to bear the cost.
You could also consider a different lender. Often, different lenders tend to rely on different approaches or even principles when valuing properties. It is probable for you to get a more favorable result by engaging a different expert. You could also opt for a neutral and objective third party.
If you are dealing with a seller, you will be free to renegotiate with them. This move will be ideal for you, especially if you have an independent valuation from a building society or bank. It would be beneficial for you to remember that no seller is obliged to reduce their asking price.
You will note that sometimes undervaluation could be a product of certain misgivings and issues with the property. The presence of the following aspects could compromise the value that your home could attract in the long run.
- Dampness
- Damaged structural timber
- Subsidence, which happens when the supporting soil tends to move away from the foundations of the house
- Rotten windows and doorframes
- Old or poor wiring
- Timeworn paint
For as long as you do not address these issues on time, you could end up with a subpar value.
2. Overvaluation
If you are a buyer, you will want to avoid any swindling. For this reason, getting a property whose estimated value is way above its real one could be quite inconveniencing. What do you do in such cases?
Take time to talk to the seller. Present to them evidence disputing this amount. Such is the best way to appeal the valuation. If there is no consensus, feel free to walk away. Hiring a new property valuer will also be helpful. They will give you a fresh insight into what price the property attracts.
Renegotiating the house price will often be subject to your contract. That implies that you will not be bound to buy this property until that time that the transaction will be completed. Going back to an estate agent will often be critical in ensuring that you get revised offers. You should note that we have instances where urgent improvements could make the transaction less affordable. For this reason, ensure that you are conversant with all the potential costs, and even get a discount.
Ensure that this valuation picks up every significant issue. You will find that repairs and even renovations could be costly. Areas that could need such attention should be captured, and so. The report needs to highlight how far-reaching the issue could be. From this, it will be easier to estimate the loss of value that could happen both soon and in the far future.
While at it, you could consider asking the seller of this property to address significant problems that the valuer could have flagged. With this, you will avoid various financial burdens in the long run. It will also make sure that both parties get the satisfaction that they deserve.
How do you overcome such subpar valuations?
Things could be quite hard when dealing with some lenders. You will be free to consult with them and agree on the way forward. Prove to them that you can raise more funds. This way, they will have no reason to deny you the rest.
Further, you could go for extra valuations from other banks. This move gives you the room to compare and contrast different reports. From this, you will be in a better position to choose which valuer suits your preferences better. Keep in mind that you will need to give the valuer at least three recent sales within the region. Such transactions need to have taken place within the last six months. Most valuers will hardly change their values upon the completion of this report.
If you are looking for a loan, relying on equity from other properties could also come in handy. This property could be yours, or you could use a guarantor. Whichever works better for you, embrace it.
Can you sue a property valuer?
Yes. Suing a property valuer that offers you incompetent figures is yet another credible option. It is advisable that you only consider suing after:
- Getting a second opinion or retrospective valuation
- Confirm whether the valuer relies on comparable during the valuation process
- Verify the sales history of similar properties within the region
- Confirm the exact rent levels within the region
For as long as the professional has been dishonest in his or her workings and figures, do not shy away from presenting the case to the relevant authorities. You will also be free to sue them if their indemnity insurance is not valid.
You will also be free to sue this valuer for negligence. Such would be an ideal move if the professional chose to ignore significant indicators during the process. For as long as you can prove that they did not undertake their duty with the seriousness it deserves, you will be good to go.
Conclusion
Property valuation is a complicated process that is not only time-consuming but also very detailed. Unless you choose the right expert, you could end up with the wrong results. Whenever an appraisal goes wrong, it will be upon you to take the necessary remediation steps. Do not shy away from asking for further help from experts in the field.
