So this property was a fun one. We got hurt by the LVR restrictions so we needed to find a way to do this with very little funds. I was able to find a great deal, at an awesome price with a great yield.
We purchased a 4 bedroom house and 3 bedroom house for $510,000. Spending only $5000 on a simple reno I was able to get the property revalued at $560,000. Now this wasn’t simple, the first valuation I got came out shocking. However because I knew the area so well, and knew what the property should be worth, I was able to put up a fight.
I ended up getting my whole portfolio revalued with a different company, and because of my local knowledge I made $60,000 by simply refusing to accept the original valuation.
This shows how incredibly important it is to be an area expert. Valuers don’t know what is going on in the market. The information they have access to is one month to three months old. When getting a property valued, you should already have a fair idea of what that value is. Give the valuer other properties that have sold in your area in the last 2 weeks. Don’t be afraid to challenge a valuation, but you must know what you are talking about to do this.
Valuations are always going to come in very conservatively (especially with everything that has been happening in the market recently). I have real estate agents giving me verbals that the property would sell in the low to mid $600′s. Whilst I know this to be true, it is proving very difficult to get a valuer to write that on paper.