A property valuation assesses what a property is worth based on everything from condition to location to amenities. It’s completed by a valuer who will inspect the property, take notes, photograph building details and layout, and complete a valuation report. It’s easy for homeowners to wait until they’re about to refinance before initiating this process. However, it’s worth knowing how your property’s value is fluctuating over time. In this article, we’ll look at why you may need this and how it’s done.
Here are a few reasons why a property valuation would be required:
Some homeowners choose to get a property valuation done to have a better idea of how their property is faring over time. If you’re in a particularly hot market, it might inspire you to sell. However, even if you’re not, it can help you prioritise repairs or refinance. The property market can be hard to predict, but regular valuations put you in a better position of understanding how your property(s) might fare should you choose to sell.
Properties are typically evaluated either by direct comparison or by summation. For either method, the property valuer is looking at the following:
With the direct comparison method, the property valuer will look at recent sales of properties near you. They’ll then adjust the price based on the details of your home. For example, if you have slightly less square meterage than a similar property in your area, the valuer will look at the average cost-per-square-metre and deduct from there.
With the summation method, the property valuer evaluates the land and then adds the improvements made to the land. This is a less common method, often reserved for buildings like churches and schools that have fewer direct comparisons.
Preparing for a property valuation means tidying up the inside and outside of the home, providing access to the valuer to all parts of the property, and getting copies of your paperwork. Paperwork may include:
This gives the property valuer as much context as possible to pin down an accurate value for a property.
If you want to arrange a property valuation, try asking around in the industry (such as your mortgage broker or a past real estate agent) for a recommendation and reaching out to the top three property valuers. You can also call Shore Financial to get free valuations in your area.
Property valuations help you understand how much your property is worth, especially if you’re thinking about selling it. If you’re a home buyer, knowing the real value of that property you’ve been keeping an eye on gives you the information you need to assess if it truly is a worthwhile investment.
Shore Financial is here to help you increase your wealth through smarter investing decisions. We’re here to talk through your dreams and make them a reality. We are Sydney’s leading mortgage experts, and our customer service knows no bounds.
If you’re looking to refinance, renovate or sell your home, a property valuation provides a good opportunity to clarify your current situation making it easier to hit your financial goals. Shore Financial provides these valuations and is here to help.
Contact our team today, so we can help you make better sense of your property choices.