Owning a home is indeed a significant investment, accompanied by various responsibilities. One crucial obligation is to maintain and enhance the value of the property over time. To accurately assess the current market value of a home, it is advisable to engage the services of a Certified Practising Valuer (CPV). These professionals are extensively trained in property valuation and are capable of providing precise valuation reports.
In Perth, house valuations play a pivotal role for homeowners and prospective buyers alike. A property valuation report serves as a comprehensive document that outlines the market value of a specific property. CPV-prepared reports are widely recognised as official proof of market value, holding significance in legal contexts.
Valuers are typically registered with the Australian Property Institute (API), which ensures adherence to industry standards among property professionals across the country. Thus, relying on CPV-prepared reports offers the most reliable means of determining market value in Australia.
Before commissioning a valuation report, homeowners should take steps to maximise the value of their residential property. This might involve various measures such as house maintenance, renovations, and enhancements to kerb appeal. By doing so, homeowners can ensure that they receive an accurate assessment of their property’s market value.
How to Increase a House Valuation?
If you want a house valuation to come back with a high figure, you should take steps to improve the value of your home.
A few of the things that residential property owners can do to improve a home’s value include:
Improve the Street Appeal
Never underestimate the importance of your home’s kerbside. The street appeal of the home is the first thing that potential investors see. As such, it has a direct impact on the value of the property.
Renovate and Upgrade the Kitchen and Bathroom
The kitchen and bathroom are often seen as the heart and soul of a home. Upgrading to a spa-like bathroom and spacious kitchen is a guaranteed method of improving market value.
Maximise Floor and Storage Space
A well-designed house that maximises the internal space is attractive to investors. Additional storage space through sheds, garages or a basement can also do wonders for value.
Improve Energy-efficiency
Energy-efficient homes are growing in demand worldwide and having an environmentally friendly living space is an attractive feature.
What Do House Valuers Consider When Preparing Reports?
A registered CPV will consider a range of internal and external factors when preparing comprehensive valuation reports. As a range of different factors may impact the current market value of the property.
A few of the main considerations valuers review are:
Location
- Neighbourhood reputation
- Proximity to public transport, hospitals, and school zones
- Crime rate
- Surrounding infrastructure
- Environmental risks
Size and space
- Floor space
- Storage space
Kerb appeal
- State of the lawn
- Condition of the driveway
Age and condition of the building
- Quality of the material
- Standard of maintenance
Renovations and renovation potential
- Notable upgrades and potential for future upgrades
Market conditions
- The state of the market will naturally inform the price of a property
- A seller’s market is when prices are rising, and a buyer’s market is when prices are dropping
The Benefits of a High Valuation
A house valuation that comes back with a high market value is hugely beneficial for property owners. A few of the main benefits that come with a high market valuation are:
- Increased Equity: A valuation report that outlines high market value can result in increased equity; the difference between the value and the amount owed on mortgages or loans. A higher equity can lead to strong financial stability.
- Improved Borrowing Capacity: A high market value works in your favour when considering borrowing against your property. The more valuable a property is, the more favourable the loan terms are likely to be.
- Attractive to Investors: A property with a high market value is attractive to investors as they can rely on the high foundational price, implement upgrades, and sell at a profit. The more demand there is for your property, the higher the price will rise.
- Confidence in Property Management: Knowing you have kept up the value of your home will instil confidence in your property management abilities and drive you to keep up good maintenance. Regular maintenance and management will keep your investment a worthwhile one.
- Swifter Negotiations: During sales negotiations, an official document that can back up the set sales price will lead to much quicker and smoother negotiations. Parties will not need to waste time debating market value as the valuation report will serve as a clear indication.
Seize the Opportunity to Elevate Your Home’s Potential
There are several things that homeowners can do to improve the value of a home. To see proper growth, owners need to plan carefully and use the necessary tools at their disposal.
Repairing old issues, implementing upgrades, maximising space, modernising the home, and more can all do wonders for value. Reviewing the several factors that CPVs consider when preparing reports can help you understand what contributes to a house’s value.
The advantages of having a high market value attached to your home are plenty. From higher equity to swifter negotiations, a valuation report showing high market value can be beneficial.
For more information on how to make your home’s value higher, don’t hesitate to give us a call today.