3 Important Points about Independent Valuations
Independent valuations can be critical to examining the prospect of your investment portfolio. When you are looking for a fresh finance or a refinance or a subtle restructuring of your debt, the idea is to get an independent valuation conducted. It will give you a wholesome idea of whether the investment can bring revenue or erode your portfolio. Here are a few things to keep in mind about home valuations.
Estimates are conservative because of legal liability of valuers
An independent valuation is quite separate from a real estate valuation. This is because during the latter, the ulterior motive of the real estate agent may come into the picture. He might be looking to list the property at a higher rate in order to get a steeper price for the vendor. In contrast, independent valuers of the property have no hidden agenda. In fact, they are likely to value your home a little conservatively, sometimes at the expense of making you cross. Homeowners need to be a little understanding here. The valuers, after all, may work up a legal liability for themselves if the banks suffer while selling the home in question on a later day.
Valuation is subjective in nature
While valuers look to gauge the fair market price of a property in right earnest, it will be wise to note that we are not dealing with an exact science here and the valuation at best is subjective in nature.
Comparable Sales Figure
Valuers too often rely on comparable sales figures that give them the sale figure for equivalent properties sold within a short radius in the last few months. While it is definitely a reliable yardstick, it may not work too well for those properties which are unique in their style. And this then can affect the independent valuation drastically.