5 Things To Improve A Valuation

Dealing With A
Poor Val

 5. Present a strong case up front

Give the valuer the story of why this is a great property. Not sales talk - which they will discount - but the real reasons YOU bought the property in the first place. Nobody knows the property better than you, so tell the valuer why it’s worth what you think it’s worth.

4. Give suggestions on comps

Like it or not, valuations are mostly based on comparable transactions and properties, so comps matter a LOT! That being the case, find the comparable properties you think best show the value of your site and let the valuer know which ones they are and why they are relevant.

3. Give commentary on non-comps

Nobody likes it when their property gets compared to the wrong examples in the market, so tell the valuer WHY certain transactions are not applicable. Maybe they’re on a corner and yours is in the middle of the block. Maybe yours has a north-facing aspect and others get less sun. Whatever the reason you think certain transactions don’t apply, tell the valuer what those reasons are.

2. Present a clear picture

People don’t write multi-million dollar checks for things they don’t understand. Funders don’t fund projects until they really understand what they’re investing in. Given that, it just makes good sense to present the clearest picture, with the most back up, that you can. If there are weaknesses in the property, the valuer and the lender are going to find out what those weaknesses are - that’s their job. They may be less motivated to consider mitigations, so tell them what those mitigations are. Give the valuer a clear picture of what the land is and why you think it’s worth what you think it’s worth.

1. Show post-crisis transactions

If there are any comparable transactions that happened post-crisis, this will be the most persuasive evidence that your property should not be discounted because of the effects of the pandemic.