What is a Valuation?
A property valuation is a detailed report that is carried out to determine the actual value of a property. Unlike a market appraisal, which is carried out by a real estate agent, a formal valuation is undertaken by a qualified professional who is legally responsible for the information they provide.
When You Need a Valuation
If you want to buy a property, your bank will probably require a valuation of the property you want to buy before they will lend you the money. Banks and lenders need to know how much the property is worth so they can sell the property and recover sufficient funds in the event that you default on your repayments. For this reason, a valuation might be required if you want to borrow money, refinance, or draw down on the equity in your property.
You might also require a property valuation if you need to establish the value of a deceased estate for dispute resolution, a property settlement, or asset accounting and management.
Valuers in NSW
Valuers in NSW must be trained and educated to a suitable standard. They must be qualified in accordance with standards set down by the Director-General and registered with the Department of Fair Trading in accordance with the Valuers Act 2003.
What to Expect from a Valuation
A formal valuation takes into account factors such as:
- The size and aspect of the property
- The property’s location
- The land the property is on
- The number of bedrooms and bathrooms
- The quality and condition of the building materials
- Any planning restrictions and local council zoning of the house
- Ease of access to the property
- Features of the home
- The structure and condition of the property
- Quality of fixtures and fittings
- Any hidden property damage
- Environmental risks to the property
- Caveats or encumbrances over the property
A valuer will visit the property in person to assess its condition and note any structural faults and nuances. They then prepare a standard three-page written report of their findings within two to three days of their visit. The report will also explain how and why the value was determined.
A valuation will also involve looking at similar properties in your area, property sales in the last six months to a year, and current market conditions.
Tips for Getting the Best Valuation
Valuers are looking below the surface, so you don’t need to worry too much about your home. However, to maximise your valuation, complete any unfinished jobs and take care to present your home to look its best.
What You Need to Know
- A valuation will be provided with a fee involved, depending on size & location.
- A valuation is impartial, based on facts, and gives you a definitive value of a property.
- However, there is always a subjective element to a valuation since it is produced for the requestor for a specific purpose.
If you would like to know more about valuations or ask any questions, get in touch with us. We’d be happy to help you arrange a valuation of your property or talk to you about getting the right market price for your property.