Receiving an unsatisfactory property valuation can be frustrating. However, you have options to dispute the valuation if you believe it does not accurately reflect the true market value of your Sydney property. Follow this step-by-step guide to effectively contest a property valuation.
Review the Valuation Report
Carefully examine the valuation report to understand how the valuer arrived at the property value. Check that the report includes an accurate description of your property, including land size, home size, features, condition, etc. Ensure the comparable sales used to assess value are truly comparable to your property.
Gather Supporting Evidence
Compile documents and data to support a higher valuation:
- Recent sales of homes similar to yours that show higher sold prices.
- Details on recent improvements or renovations not captured in the report.
- Professional building and pest inspection reports if the valuer overlooked issues.
- Market data showing rising demand and prices in your area.
Outline Your Case
Prepare a summary document outlining why you believe the valuation is inadequate and how your evidence demonstrates a higher value. Focus on facts like sold prices rather than emotions.
Contact the Valuer
Politely contact the valuer who prepared the report. Explain why you think the valuation falls short and provide copies of your supporting documents. Ask for a review based on the evidence.
Submit a Formal Dispute
If the valuer does not adjust the valuation, submit a formal dispute request to the valuer’s firm. Outline your concerns, supporting evidence, and desired resolution. Adhere to dispute resolution timelines outlined in the valuation contract.
Seek a Second Professional Opinion
If the valuation firm rejects your dispute, engage a different qualified valuer to provide a second opinion of value. Having another set of eyes review the property and valuation can strengthen your case.
Utilise Mediation Services
In the event the valuation dispute remains unresolved, participate in mediation. An independent mediator will review both sides and work towards a satisfactory middle-ground valuation figure.
Initiate Formal Legal Action
Taking legal action should be a last resort. Seek professional legal advice to determine if formally contesting the valuation in court makes sense based on time, costs and potential outcomes.
Following these steps methodically can help successfully contest an unsatisfactory property valuation. Build a strong case with facts and data, and be open to impartial mediation. Avoid over-emotional appeals that lack evidence.