Hi, my name is Rachael Goldsworthy, and I’ve just come from a inspection at a home that had a valuation done on it. With evaluations they’re always done after contracts are exchanged, and it’s just to ensure that the bank’s lending the money against the right value, and they want to ensure that their not lending over and above what the home could potentially be worth. The situation is if the home is sold often a home is very close to market value or over and above market value, or what they perceive to be market value. In that instance, if the valuation doesn’t come up trumps, that means that obviously the agent’s done a really good job, and you’ve got more than what they perceive the market value to be of the home.
Equal it means that money needs to come from somewhere to ensure that it gets sold. For example, if the home is sold for 500,000 and the valuer thought that the home was only worth 490,000 it means that that difference of $10,000 needs to be met by somebody. Either the buyer comes up to that 500,000 by putting $10,000 into it, or the vendor if the buyer is unable to, is then asked the question whether they are willing to sell the home at 490 as opposed to 500, the agreed sale price.
It just depends on an individual circumstance, so it’s a case by case basis. It’s just a matter of working out each time that you sell your home as to how things pan out. Usually, nine times out of 10 you’re fine, or maybe eight times out of 10 you’re fine, but sometimes you’ll find that the home is not valued as high as what it might have been sold for. Sometimes it’s a process of negotiation, but it’s all good. If it’s managed in the correct way, it’s an easy process to follow. All right, if you’ve got any other questions in regards to those sorts of things or real estate, don’t hesitate to give me a call.