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Two Red Shoes Copyright © 2020 All rights reserved. Call on 02 9002 0380, 0404 494 929, email us  or 'old school' fax 02 9002 0381

Jarrett Group Pty Ltd atf Jarrett Group Discretionary Trust trading as Two Red Shoes hold Australian Credit Licence No: 428614 and are members of an external dispute resolution scheme. Details of our complaint resolution process can be found here or please see our credit guide. All information contained on this site is general information only, and does not take into account your particular financial situation or needs. You should consider your personal objectives, financial situation along with the recommendations of your trusted advisors.

Sydney mortgage broker operating in

  • The Hills District

  • Hawkesbury

  • Nepean 

  • North Shore

  • Penrith

 

  • Camden

  • Baulkham Hills

  • Lower Blue Mountains

  • Parramatta

  • Hornsby

 

  • Windsor and Richmond

  • Rouse Hill

  • Hunters Hill

  • Gladesville

  • NSW Central Coast too!

Have you ever wondered how valuations work?


What’s your property really worth?

If you’re in the market to sell or you want to refinance you will want to know what your home is worth. But it’s an inexact science, basically the real valuation is the price someone is willing to pay and you’re willing to accept. A valuation is derived by comparing other properties, that have similar attributes to yours that have recently sold, and add or subtract to come up with a fair comparison.

It’s handy to keep in mind that the data the valuer is using is at least 12 weeks old – from the time someone agrees to buy a home until the home is settled is 6 weeks and the data isn’t forwarded for up to 6 weeks thereafter. This is a huge issue in a rising market if a valuer can’t see the value you want in their supporting data, but can work to your advantage in a static or slowing market.

Another interesting aspect is a valuer rarely comes up with their own price from scratch – more often they’re asked to justify the value that has been suggested to them – if the price that you’re paying or the value you need to get the job done is close to the mark very often they will do their best to support it but they’ll only offer a suggestion if the price you’re asking is not even close.

While we all believe there should be a set in stone figure – the reality is this is not the case.

Look at the number of times you see a standard home sold in your area and wonder how on earth did they get that price, or why did that go so cheap, there is no actual “value” for a property in this regard. As a seller, and I have held a valuation in my hand that says my property is worth more than the current offer, no amount of evidence or valuation reports is going to force more money out of someones pocket, therefore the ‘value’ has no impact on the actual market either.

So, an interesting tool but by no means gospel.

see my full article for the Western Weekender here

https://issuu.com/weekenderpenrith/docs/propmarch17/1

#mortgagebrokerPenrith #valuations #refinancing