Property valuation is basically the exercise to determine the market value of a property based on factors like location, features, and other conditions.
The valuation is typically performed by a professional surveyor, and they take notes and photos and then submit a valuation report.
The valuation report can be helpful when buying or selling property, splitting from a partner, or dealing with probate. Also, Amera Property Management explains that the property valuation can also determine the property rental cost if you are trying to transform your property into an investment property.
You can contact Perth Property Valuers for excellent property valuation Perth services. Determining the true value of a property is good for many reasons.
Selling a Home
If you’re looking to sell your home, the last thing you want is for it to stay on the market for too long.
One of the reasons could be the wrong price. But when you perform property valuation, you are in a position to determine what your property is truly worth.
And this enables you to put up your home for sale at the best price.
Renting Property
If you have a rental property and are looking for tenants, a property valuation may be useful in determining fair and competitive rent.
The best rates are around 8% of the value of the property. If your rentals are exorbitantly priced, it might become difficult to find tenants.
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Mortgaging Property
If you’re looking to take a loan with your home as security, the financial institution may require a property valuation.
The market value of your property can influence the loan you are given. In case of defaulting on the loan, you might lose the property.
Taxation Reasons
There are different types of taxes levied on assets. These taxes include wealth tax, vacant land tax, and property tax.
The market value of the property is first established before working out these taxes.
Legal Requirements
If the property is at the center of a legal dispute, it may necessitate the performance of property valuation.
Some of the instances in legal practice where property valuation may be required include lease agreements and probates.
Insurance Coverage
Buying insurance is a suitable way of safeguarding your property against various negative events.
Property valuation is critical for determining the policies to buy, and this helps you to ensure that the property is sufficiently insured.
Renovating Purposes
Renovation is simply upgrading your property by adding new fixtures and enhancing old features.
Property valuation is also critical for the purposes of renovation. It prevents you from spending money needlessly, as you are aware of the conditions and worth of every part.
Common Things Taken into Account During Property Valuation
It takes a professional property valuer to perform property valuation. They have different tools for gathering critical information and then using it to make an accurate estimation of the worth of the property. Some of the things they take into account include:
- Location: it’s a bit cliché, but the most important feature of a property is: location, location, location!
Properties that have been built in an area without amenities or roads usually have a significantly lower value than waterfront properties.
When working out the value of the location of your home, property valuers also consider things like centrality, neighborhood, and development.
- The size of the property: generally, the bigger the size of the property, the greater its worth, as the property ideally has used a lot of resources.
But if a property is on the smaller side, it doesn’t automatically mean that its worth is significantly lower.
- The number and type of rooms: the number and type of rooms can have an impact on the worth of the property.
If a property consists of numerous rooms, it likely has a high value, but more important than the number is the design.
- Structure and condition of the building: the condition of the building is a major factor in calculating the worth of the property.
If the building is new, or recently renovated, it has a higher value as opposed to if the structure were old and decrepit.
- Architectural style: some properties have basic designs and others have complex architecture.
The properties that have been built with fancy architectural styles usually have significantly greater value than the properties built with basic (and common) styles.
- Ease of access: is the property easily accessible or does one have to jump through hoops of fire before they access it.
The easily a property may be accessed, the greater its value.
- Land size: what quantity of land is the property sitting on? Properties that stand on huge land allotments usually have far greater value than properties that sit on small portions of land; as land is an asset that always appreciates.
