Purchasing a home is one of the most important financial decisions you can make. An accurate property valuation is critical to ensure you pay the right price. However, assessments don’t always reflect true market value. When Philip and Amanda found their dream home, an undervalued appraisal threatened to derail the sale. Here’s how challenging the assessment helped them buy their perfect property.
Philip and Amanda fell in love with a gorgeous two-story house in the suburbs of Wollongong. After visiting comparable listings, they determined a fair offer price of $850,000.
However, the bank’s valuation came in at just $800,000 – $50,000 under asking price. This lower appraisal meant Philip and Amanda couldn’t secure financing for their initial offer.
Unsure what to do, they contacted Wollongong Property Pro to review the bank’s assessment. Our experience suggested the property was undervalued.
Reviewing the Valuation
Our senior property valuer analysed the bank’s appraisal report. Several issues indicated the valuation was too low:
Sales Data Was Outdated
The bank used sales from 6 months ago. Recent comparable sales suggested higher values.
Improvements Not Fully Considered
The upgraded kitchen and pool weren’t appropriately accounted for.
Location Factors Ignored
Proximity to schools and parks increased desirability.
Challenging the Assessment
With evidence supporting a higher value, we formally disputed the lender’s valuation. Our detailed response highlighted flaws in their approach and methodology.
We provided updated sales data from similar properties in the area, emphasising recent upward trends. We also quantified the added value of the home’s renovations and location.
The bank reviewed our rebuttal and agreed to revise their valuation to $840,000. Though still below the initial offer, this new appraisal allowed Philip and Amanda to secure financing close to their target budget. In the end, they purchased the beautiful property that was perfect for their family.
Challenging undervalued assessments requires expertise. The valuers here at Wollongong Property Pro helped Philip and Amanda realise their dream by providing a more accurate perspective on true market value.