In the world of real estate, property valuations play a huge role. A property valuation is a service provided by a qualified valuer to determine the market value of a subject property.
A professional valuation can be hugely beneficial for property owners, investors, and sellers. Like with any professional service, it does not come free. Finding an affordable valuation service in Perth is essential for anyone with a vested
The cost of valuations often puts people and organisations off, but the benefits are plentiful and may even lead to saving money in the long term.
Learning about the factors impacting cost can help you financially prepare for these expert services.
What factors affect the cost of valuation reports
There is no one set fee for property valuation reports in Perth. A range of different factors impact the final cost.
Some of the main factors that affect costs are:
- Type of report
- Purpose and scope of the report
- Experience of the valuer
- Type of property
- Size of the building and land
- Location of the real estate
The most reliable way to predict how much you’re likely to pay for a valuation is to request a quote from the firm. Quotes provide a clear outline of the pricing structure and offer insight into how much the valuation report is likely to cost.
The more complicated and time-consuming a valuation service, the higher it is likely to cost. For example, a commercial property valuation is a more complicated analysis than a residential valuation and will therefore cost more overall.
What about free options?
If the cost of a valuation is too steep for you, you may be considering a free service such as a real estate appraisal or an online valuation service. While these services can be useful, it’s important to understand why they don’t hold the same value as independent property valuation reports.
Real estate appraisals
A real estate appraisal is a service offered by realtors looking to sell a property. They use their insight to estimate the market value of the property in question.
Realtors, however, earn a commission on the sale of a property. This means that there is always an internal bias affecting estimations, whether consciously or subconsciously.
A real estate appraisal is also not seen as certified proof of value, but rather only an estimation. They are therefore not as useful or as accurate as independent property valuation reports
Online valuations
An online valuation is a tool that uses automatic valuation models to estimate the market value of the subject property.
The online tool uses a combination of data analytics, algorithms, and publicly available information to estimate the value of a property.
An online tool can be useful for estimating the value of multiple properties when you’re in the early stages of identifying options, but it should not be relied on for a definitive.
The advantages of paying for a valuation
Free services are tempting but don’t hold nearly as many advantages as independent valuation services. A few of the main advantages of independent property valuations are:
Objective, independent and unbiased
The independent and professional nature of the report means there is no risk of outside influence or internal bias. The valuation is an objective review of the market value based on existing data, comparable sales, a physical inspection, and several internal and external factors. They are the most reliable method of finding market value.
Accuracy
Valuation reports are prepared by highly qualified and experienced valuation experts. As such, valuers maintain an exceptional standard of precision across reports and make sure to consider every relevant factor contributing to value.
Swifter negotiations
A certified valuation can be used as a foundational point in negotiations with buyers or sellers. As all parties have a clear outline of market value, they don’t need to waste time debating it and can instead use the report to find a reasonable and fair price point.
Professional analysis
Valuers are expertly trained professionals with comprehensive knowledge of the local property market and reliable valuation methods. Qualified valuers generally have access to various databases, market trends, and legal regulations, giving them the tools to prepare a comprehensive and well-informed valuation report.
Legal Compliance
In a range of different circumstances, independent property valuations are needed for legal and financial purposes, such as mortgage applications, division of the estate, refinancing, real estate settlements, taxation, and legal disputes. A property valuation report is legally accepted as certified proof of value and therefore carries great weight in these cases.
Risk Mitigation
There are inherent risks associated with buying, selling and owning real estate. With valuation reports, individuals and organisations can make informed decisions that minimise risks and maximise strengths
Market Insight
Independent valuations offer critical information surrounding the local real estate market. They give property owners, investors, and developers the data needed to understand market trends, demand-supply dynamics, and potential investment opportunities.
Peace of Mind
Getting an independent valuation report is a great way to boost the confidence of investors or give yourself peace of mind regarding the existing market value.
In conclusion
Independent property valuations are a massively beneficial service for anyone with a vested interest in real estate, but they do not come free. The cost of a property valuation from a qualified expert depends on several different contributing factors.
The factors that affect cost include the type of report, the scope and purpose of the report, the experience of the valuer, the size of the property, the type of property, and the location of the property. Requesting a quote from a valuation firm is the most reliable way of finding out how much you’re likely to pay for a valuation service.
While you may be tempted by free services, they do not hold the same standards of legitimacy and accuracy as valuation reports. The advantages of independent property valuations range from objective, unbiased and accurate assessments to assistance with legal disputes and settlements.
If you would like to learn more about the cost of property valuations in Perth, don’t hesitate to give us a call today. As industry leaders, we are happy to assist.