WHAT IS A PROPERTY VALUATION?
Although there are numerous investment options today, many investors consider property to be among the best. The value of property always increases with time and once you buy, you can take full control of it; which is something you cannot be guaranteed of with other assets. Even so, irrespective of the property you wish to acquire and how you intend to use it, it is crucial to have it valued. Property valuation involves gathering of information regarding the size, physical location, and market rates of a specific property. With this information in hand, you can be certain to make a more informed decision.
When Should I Get A Property Valuation
There are quite a few instances when you may require the services of a licensed property valuer. If you are in the market for a particular property for example, you have to understand its value so that you are not misled by vendors. Likewise, a property owner or seller can be in a better position to tell when to increase the rent or selling price if they are aware of what is being offered in the market.
Other than that, individuals looking to acquire mortgages or refinancing may be obligated to conduct property valuation to facilitate the lending process. With property as collateral, financiers can be more willing to lend as they will be sure to recover part if not all of their money in case of a default. The valuers hired in such cases are however often contracted by the institution rather than the borrower. Such situations notwithstanding, when it comes to property matters, the significance of valuation services cannot be disregarded. While it may seem like an overestimated service coming at an extra cost, it is always worth the trouble in the long run.
Valuations may also be required for various tax requirements, including Capital Gains Tax and Stamp Duty assessment.
How Do Valuers Come Up With Figures?
When your property is being valued, several factors have to be taken into consideration. These include but are not necessarily limited to:
• Location of the property;
• The standard and condition of the property;
• Structural faults;
• Planning limitations; and
• Zoning of the property.
A valuer has to put these elements together with market evidence in the neighbouring areas in order to come up with a sound valuation report. Remember though, the asking price and costs of building are not automatically linked to value.
The Distinction between Valuers and Real Estate Agents Valuations
Valuations and appraisals are two entirely different things. Licensed valuers have to hinge their findings on facts and hard evidence, and they are legally held accountable for any information they present. The valuations they conduct also have to follow certain guidelines. Real estate agents, on the other hand, are professionals who act on behalf of the seller with an aim of getting the highest price for the property. The information they give is connected to the sales of other properties in the specified area.
How Can I Increase The Value Of My Home?
There are a number of modifications you can make to get better rates for your property. Such adjustments will not only give it a new look, but they will also facilitate the restoration of worn out features. In connection with this, here are some of the things you need to think about.
Painting The External And Internal Walls – Other than your yard, the walls are the first things that anyone will notice when they visit your premises. When you are aiming to get good returns for that property therefore, you need to paint them to make them look more appealing. Chipped or faded paint can push away potential buyers as it may give the impression of a dilapidated structure.
Renovate The Kitchen and Bathroom – The bathroom and kitchen are two very useful areas in a house. Hence, if you want to draw more potential buyers, revamping these spaces can give them a new lease of life. Leaky sinks, chipped floors, and rusty faucets are all things buyers do not want to see.
Repair/replace The Floors And Ceiling – Your walls and floors may acquire dirt, get mouldy or just wear out over time. Depending on the material used on the floor, warping and cracking may be experienced as well. Such issues should also be sorted out before any house is put up for sale.
On top of the abovementioned issues, some of the other things you may need to take care of to increase your property value include installing new heating/cooling systems and improving your external area, including landscaping and outbuildings. The value of property is a subject of major importance to investors in Australia. As a seller, in order to maximise the value of your property you should ensure that each feature on your property is in the best possible condition before you sell or lease.