If you own a property or are looking to buy, it is crucial that you have a clear understanding of its worth in the existing market conditions. Calculating the worth yourself is much too complicated, but a home valuation in Perth can be of great assistance.
An independent property valuation performed by a qualified professional is the most reliable method of assigning a monetary worth to your home. Valuers will look at several different internal and external factors when preparing the report.
These valuation reports are seen as definitive proof of the property’s value in the eyes of the law. This means that it serves as an official document and can be used in various legal, private, and business negotiations or transactions.
Understanding the process can help you prepare. If you know what valuers attach importance to, you won’t end up being surprised at the outcome of your valuation.
What do valuers look for?
A residential valuer is trained to perform meticulous examinations for properties of all shapes and sizes.
A valuer will consider multiple factors and characteristics when preparing the valuation report.
A few of the most important considerations that a valuer will take into account include:
The area where a home is located plays a vital role in its value. The proximity to schools, hospitals, and public transport will all directly affect its worth. Factors such as the crime rate and employment rate of the location will also impact the value.
Size and space
If you were wondering “do valuers look inside the house?”, the answer is a resounding yes. The size of a property naturally impacts its value. A home with several bedrooms, significant floor and storage space, and functional kitchens and bathrooms will likely fetch a much higher price than a more compact house.
Age and condition of the building
The importance of property maintenance should never be underestimated. If a building is old, and on the surface looks ill-maintained, its value will be negatively affected. A modern-looking home with no clear issues of deterioration will be worth much more.
The street appeal of a house is a crucial factor when determining its value. A home that does not appeal to investors from the outside will not attract buyers. Taking care of your front lawn, garage, and driveway can help increase the value of your home.
A well-designed house both internally and externally plays a massive role in the property’s worth. Hiring an expert can help you ensure you’re getting the most out of your place of residence, and ultimately boost the value of your house.
The existing market conditions are a defining factor in determining a property’s value. The real estate market is subject to constant and sometimes instant change. Valuers thus need to stay on top of market conditions at all times.
State of the economy
The economic state plays a role in the pricing of housing. In a strong economy, the housing market is healthy, and demand for homes is high. However, when interest rates increase, fewer people buy homes.
How far back do valuers look
A valuation report is for the most part prepared in line with the existing market conditions. Valuers are not concerned with the state of your property a year ago, as they perform inspections based on its current condition.
There are cases where a valuer may look at the value of a property at a date that has already passed. These are referred to as retrospective market valuations and require a specialised and complex analysis from highly trained professionals.
A retrospective valuation is mainly needed for tax purposes, litigation, or any other sort of legal process. The valuer will carefully consider the market conditions at a backdated time to determine the property’s value.
For the most part, though, valuers are focused on the existing state of the property and will prepare reports in accordance with such.
An independent property valuation gives homeowners a clear outline of the value of their property in the existing market conditions. Professional valuers are registered with the Australian Property Institute (API) and follow international valuation standards when preparing reports.
By reviewing the internal and external factors that valuers consider in a valuation, homeowners and investors can make sure they’re prepared for valuations. By properly preparing, there will be no unexpected issues that decrease the value of the home.
Professional valuers look at the size, location, street appeal, layout, market conditions, and economy when preparing the report. By carefully considering each contributing factor, valuers can reach accurate final figures.
In most cases, valuers are only concerned with the state of the property in the existing market conditions. There are, however, rare cases where a retrospective valuation will be needed.
For more information on what home valuers look for in a property valuation service, don’t hesitate to give us a call today. Our experts are more than happy to help.