The first step you need to take when entering the real estate market is to have your property expertly valuated, whether you are considering buying or selling. Without a property valuation, you simply cannot assess the true worth of the property.
What To Look For In An Expert Property Valuation?
First, make sure that the valuer you choose is qualified, experienced and registered to provide this service. Without these three essential skills, you are unlikely to get a true and expert valuation. Banks, financial institutions and other property finance providers will not accept valuations that are not performed by a registered valuer.
Next, you want to find a company who has knowledge of the local residential property market. Property valuations are highly influenced by location and a valuer with expert knowledge in your area will take local market factors into account.
You also need to be aware that most real estate agents do not provide valuations but rather appraisals. Appraisals do not take the same factors into account as valuations and are therefore often inaccurate. If you have received an appraisal, it is more than likely that this will differ from the valuation which provides a true market value.
What Factors Are Used To Determine The Market Value?
In the interest of providing an accurate property value, the following factors need to be taken into account:
– Current, local property market conditions and property volatility.
– The actual land value.
– Structures or improvements that have been made to the landed property.
– Any expected depreciation of structures since the date of construction.
– The size of the structure or structures contained on the property including living areas, outdoor areas and parking areas.
– Environmental factors.
It is however important to note that not all valuations take into consideration the current state or condition of the property or any unique characteristics that could affect the sales value.
Why Should You Get An Expert Valuation?
Most often, property evaluations are only made when requested by a bank, financial institution or loan provider in order to determine the mortgage or loan amount. However, there are many ways that this can benefit you on a more personal level.
Sellers often believe that their property is worth more than the actual market value. A valuation will give them a more realistic idea of what their property is likely to sell for enabling them to calculate any profits or losses that they could incur from the sale.
Buyers will get a better idea of what they should be paying for a property and could save money on a purchase where a property is listed according to the appraisal rather than valuation. It will also save them the hassle of having a financial provider deny finance due to a property being sold for more than it’s actual market value.
Online property valuations are fast, simple and affordable. Companies like MyValocity provide this service for both buyers and sellers and issue different valuation reports to meet varying requirements for valuations.