Diving into the world of real estate, you’ll quickly realise the importance of property valuations. Real estate investors, owners, and sellers all stand to benefit from valuation reports in Perth.
A property valuation is a way of finding the market value for a subject property. This can be for any type of property, from residential to commercial real estate. The valuation comes in the form of a report and the report is accepted as the property’s certified market value.
As these documents are seen as proof of value, the last thing you want is a valuation report with a low final figure. Preparing for a valuation is therefore absolutely crucial.
Preparing for a valuation
Like with anything in life, a lack of preparation can have dire consequences. As such, taking the right steps to prepare is critical.
Research local market conditions
Do some research. Understanding the existing real estate market trends can give you an idea of what to expect from the valuation and what you can do to boost its value.
Gather documents
Put together all the relevant documents related to the property such as title deeds, building permits, blueprints, floor plans, tax records, and any other pertinent documentation.
Take care of maintenance and repairs
Any damage or issues with the property will have a negative impact on its value. It is imperative that you address all repair and maintenance problems prior to the valuation service.
Clean and declutter
Don’t underestimate the importance of making your property presentable. First impressions matter. A clean and decluttered home allows valuers to place full focus on finding an accurate and reliable market value.
Highlight improvements
Always make sure you inform the valuer of any recent upgrades or renovations made to the property as it may lead to a higher market value. If a valuer misses an important upgrade, it may result in a lower valuation figure.
Be present during the valuation
Staying around during the valuation is key. Being present means you can answer any questions the valuer might have and advise the valuer on any unique features or attributes that may contribute to value.
Maintain realistic expectations
If you’re expecting an exceptionally high valuation figure based on no objective evidence, you’re going to be disappointed. Keep your expectations realistic in light of the market and the state of your property.
What adds value to a home?
A range of different factors impact the market value of a home. Some of the main internal and external contributors toward value are:
Location
A huge factor when it comes to market value. A desirable location is what attracts investors and home seekers. Low crime rates, a good neighbourhood reputation, functional public transport, quality schools, and easy access to local amenities all add to an area’s appeal.
Size and space
A larger home generally has a higher market value than a smaller one. Floor space, storage space, and functional space are key. A home with several spacious rooms is attractive to families and therefore valued higher.
Condition and maintenance
A well-maintained property will fetch a much higher value than one showing clear signs of deterioration, or one filled with outdated features. A modern kitchen, bathroom, and energy-efficient features all contribute towards a boosted market value.
Street appeal
The street appeal, or kerbside appeal, of a home essentially serves as its personal advertisement. The front of your home is the first thing that appeals to investors and potential buyers. A neat lawn, well-maintained driveway, fresh layer of exterior paint and a generally clean attractive front-of-home all add to market value.
Upgrades and renovations
Updated bathrooms, modern and spacious kitchens, hardwood floors, or any other notable upgrades can add value to a home. Not all upgrades add value, and doing research is critical to making the right decisions.
Future development and infrastructure
If a property is in a location where there are planned infrastructure improvements or large-scale development projects, it may add to the value of the property over time. For example, if a new commercial centre is built or improved public transport appears, the value will go up.
Historical performance
Reviewing the market’s performance over time in a specific area is a great way to determine if the property is likely to increase in value in the future.
Summary
Valuations form a key part of the real estate landscape in Perth. They are essential tools for homeowners, buyers, sellers and investors; offering a definitive outline of market value for a subject property.
Diving into a valuation without the proper preparation can have disastrous consequences. The last thing you want is a low valuation. Key steps to take include researching market conditions, gathering documents, addressing maintenance and repairs, cleaning and decluttering, highlighting improvements and staying present during the valuation.
Valuers are careful to consider every contributing factor when it comes to value. These include location, size and space, street appeal, condition and maintenance, infrastructure and development, upgrades and renovations, and more.
If you’re interested in learning more about residential property valuation services in Perth, give us a call today and speak to one of our highly qualified professionals today.