Are you curious about how much your home is worth? And have you wondered about how valuations work? You can quickly and easily get this information from a property valuation.
If you’re looking for information about these topics, then you’ve come to the right place! We’ve put together the details in one place. The information in this article includes what a property valuation is, how it’s done, and more.
What is a Property Valuation?
A property valuation is valuable for anyone looking to sell or buy a home. A property valuation is the process of having your home valued by a professional. The information from a property valuation is extremely valuable.
For a seller, a professional valuation is a great way to ensure your home is priced reasonably and accurately for the market. And for a buyer, a property valuation helps ensure the home’s asking price is fair. It’s also a great way to determine how much you may be able to get for renting the property.
How Much is Your Home Worth?
There are online tools available to help determine the current value of your home. The tools are easy to use and provide a valuation figure that can be used to determine your asking price or the price you’re willing to pay for a property. The online tool gives you an excellent idea of how much your home is worth.
However, if you’re preparing to sell or buy a home, then it’s best to use a professional to provide you with an accurate value for your property.
Who Does Property Valuations?
An estate agent usually does property valuations. They are property experts who conduct valuations for home sellers, buyers and help determine rental yield. The estate agent has expert knowledge about your area, which means they have the best knowledge and experience when it comes to valuing your property accurately. Estate agents can also help you learn more about the current local market for potential buyers and renters.
On average, a property valuation can take up to an hour. First, the estate agent spends time assessing the home. Their goal is to consider every part of the property. They also work to understand your goals and expectations on selling or renting your home.
However, there’s one thing to keep in mind about property valuations. They can become outdated rather quickly, especially if the market is volatile. The property sometimes changes quickly. So, it’s essential to understand that what your home was worth a year (or more) ago may be very different from its worth in today’s market. For this reason, it’s best to ask your estate agent for a new valuation if the last property valuation was done a few months ago or more.
If you’re a buyer and apply for a mortgage, your lender will have a surveyor conduct a mortgage valuation on the property. This is done to make sure the property is worth what you plan to pay for it.
How is a Property Valuation Done?
Before the property valuation begins, it’s a good idea to consider why you want to sell. Why consider this point? Because the estate agent may ask you some questions to best determine your motivations. The information can help them better help you achieve your goals.
Here are some common questions to consider before the property valuation:
- Are you wanting to relocate?
- Would you like to downsize or upsize?
- How soon would you like to move?
- Do you want to create an income or use equity from the investment?
- Are you wanting to take advantage of an increase in property prices?
It can be helpful to write down the answers to these questions and then have the answer ready when the estate agent comes. The answers will provide a clear road map for you and the estate agent to follow in selling your property.
Here are the details of how the property valuation process is conducted:
1). The property valuation starts with an initial consultation; at this time, the estate agent will ask questions to learn about your motives for selling the property.
2). The market study is conducted by the agent to find the right comparisons to:
- Properties that are similar in size and condition, which have recently been rented or sold in your area
- Similar properties that are currently listed on the market by their own business or other estate agents
3). If the estate agent gains your permission to market the property, they will find suitable potential buyers. The agent does this to find the right buyers for your property.
4). This step involves you guiding the estate agent around the property. Be sure to point out any specific details that may help sell the property. During the tour, the estate agent will take notes of features that may help to sell the property and may note down suggestions for home improvements that could also improve the odds of successfully selling the home.
5). In some cases, the agent may feel they have enough information, along with their market research, to provide you with a property valuation right there. However, consider this to be an approximation only. The estate agent should go back to their office and go through their findings before delivering a formal property valuation figure.
6). As the estate agent works to finalise and confirm the valuation, they will consider similar properties in the area about the same location, condition, and size of your property. The agent also considers the current market conditions, the season, and the supply and demand dynamics of the market.
7). The formal valuation figure should fall within 5% to 10% on either side, depending on your motivations for selling the property, how soon you’d like to sell, and how long the property has been on the market, vacant, and more.
Is It Possible to Increase the Value of My Property?
Before looking for ways to increase the value of your property, be sure to consult with the estate agent. They know and understand what potential buyers are looking for in terms of property. And the agent will offer advice on what improvements would help to increase your home’s value, as well as attract buyers.
Asking the estate agent for guidance will save you money; you won’t be caught up in improvements that won’t increase the value of your home. And you’ll know what improvements are best to make a sale.
It may be that your home only needs small improvements, which could be enough to increase your home’s value significantly. What’s more, the agent can tell you specifically whether your home needs large or small improvements. Thus, they will be the best guide on making the right and most valuable improvements to increase the value of your property.
Summing It Up
A property valuation is an excellent tool to determine your home’s value, how to target the right buyers, and more.
If you’d like to learn more about property valuations, contact us today! We’re happy to answer all of your questions and provide a professional valuation of your property!
Looking to get your own property valued, do not hesitate to contact us!