A property valuation is a formal process that takes into account an array of factors to determine the most accurate estimate of how much your property is worth. It will be conducted by a qualified professional, and is considered to be an investment into finding the right price for your home, considering it can cost in the thousands.
Here at Upside, our local real estate agents offer a free property appraisal, which are to be used as more of a guide to property value, and allows you to get a better understanding of a possible selling price. On the other hand, a valuation is the more formal of the two processes and tends to be more conservative as it is used for legal or banking purposes rather than for selling a home.
So what exactly does a valuation take into consideration, and what are the factors that will help determine a property value?
1. Land size
Property valuers will often start by looking at the land size of your entire property, as well as the size of the home itself.
2. Age and condition
Those in the property business know that a 20-year-old home that has been well cared for, and perhaps even renovated, is worlds apart from a 20-year-old home that has been neglected.
Therefore, not only will your professional want to know the age of the home, they will also look at its condition, especially in high-use areas that age quickly such as bathrooms and kitchens.
3. Number of rooms and bathrooms
An obvious and simple inclusion for real estate property value is the number of bedrooms and bathrooms (after all, many people search using these numbers as filters).
Also included will be other rooms and areas such as the garage, laundry room, and storage.
4. Location for schools, transport, and amenities
Many families will be on the lookout for homes with desirable schools in the area, and close public transport options and shops are always a great feature.
Your property professional will take into account all nearby facilities, including things like schools, supermarkets, bus stops, and shopping centres.
5. Planning restrictions and zoning
Local council restrictions and zoning can have a big impact on your property’s value, and as these can change fairly often, it’s important to have an up-to-date understanding of what’s allowed (and what isn’t) in your area.
A professional will research current laws, and include these in your valuation.
RELATED: What does a professional valuer do?
When it comes to property valuation, Sydney Airport out your back window can be more of a detractor than a benefit. Noisy flight paths, close motorways, and rumbling train tracks are all examples of potential detractors.
There are some factors that may be considered as detractors to the worth of your property, so these will also play a role in any in-depth valuation.
7. The current market
If your neighbourhood has been seeing some impressive home sales recently, then it only stands to reason that the local market might be shifting in your direction. Similarly, if the entire region, or even country, is shifting towards a seller’s market, then your property may be valued more highly than it would in a buyer’s market.
A valuer can look at recent local sales and other publicly available information to inform this factor.
If you're thinking of selling your home, a property appraisal is the perfect starting point for the process of selling a house, and is provided as a free service by your local Upside agent. Simply hit the button below to request a free, no-obligation appraisal.