Getting a property valuation lower than expected can derail your home loan approval. But is it worth challenging the bank’s valuation? At David Fitzroy, we employ proven tactics to overturn unreasonable valuations on your behalf. This guide explains when and how to dispute a low valuation.
Why Do Low Valuations Happen?
Most valuations line up reasonably close to the asking price. But certain factors can lead to abnormally low appraisals:
- Falling property values during market downturns
- Major hidden defects overlooked by the valuer
- Lack of recent comparable sales data
- Overly ambitious listing prices
Valuers are fallible humans too. Desktop valuations without an internal inspection often contain errors about land size, bedroom counts, or improvements. Some valuers just tend to be more conservative than others as well.
Should You Challenge the Valuation?
You can dispute a low valuation, but your chances of success are less than 5%. It takes substantial evidence and skillful negotiation to overturn the bank’s figure.
In most cases, requesting an assessment from another lender is more effective. As your broker, we’ll source free up-front valuations and select the most favourable one. This prevents multiple credit checks while shopping around.
However, if the initial valuation seems unreasonably low, it can be worth challenging. We’ll gather the required evidence to present a compelling case on your behalf.
How Do You Successfully Dispute a Valuation?
The key is providing extensive supporting documents and information to back up your position. Here are proven tactics:
- Carefully review the valuation report to identify any clear errors or faulty assumptions.
- Gather market data like recent comparable sales and reports demonstrating rising local prices.
- Get opinions from knowledgeable local real estate agents to reveal flaws in the bank valuer’s methodology.
- Present all evidence to the bank in a clear and logical manner. An experienced broker can negotiate effectively on your behalf.
- Emphasise that you are a serious buyer willing to work with the vendor if the price is adjusted slightly.
Partner With Valuation Experts
David Fitzroy has decades of valuation experience. We understand all aspects of the process and how to build a convincing case. With our extensive lender relationships, we can also source alternate assessments to maximise your borrowing potential.
Don’t waste time challenging valuations alone. Call us to explore your options or get a new assessment arranged. Even when disputes fail, we can often renegotiate purchase prices or loan structures. With the right strategy, low valuations don’t have to derail your plans.
