If you own or are planning to real estate at some point in your life then one thing is for certain – you will need a property valuation by a professional property valuer to assess its market value. A valuation service is required in many different situations in relation to all kinds of property-related circumstances. For example, you will need the valuation of your property if and when you decide to sell it, if you decide to go to court, for property settlement, and for building insurance. Property valuations are also required for taxation purposes.
If you are renting or leasing your property, a valuation is also important in setting rental or lease rates or ensuring that the payable rent is consistent with its true rental value. Furthermore, property valuations are also important for personal reasons i.e. monitoring property value within the market, development appraisal, and loan or government grant applications.
Variable factors in property valuation
Given all these critical needs, it would be ill-advised to just extrapolate on the value of your property. A property’s value is more than just an estimated guess based on your opinion. A valuation needs to be based on complete objectivity – this means that an estimated range or your own emotional ties to the property are not adequate to determine the property’s value. In fact, there are many variables that affect the property value, all of which require extensive research, expert knowledge, and observation.
Typically, 10 factors are at play when a property valuer examines your property. These considerations include the following:
- Design and square footage— the number of bedrooms and bathrooms, the square footage of the residence; added features like a garage, pool, patio, balcony, backyard, etc.
- Age and appearance— architectural design and vintage of construction; overall aesthetics of the residence and its exterior.
- Energy efficiency— installations like energy-efficient appliances, maximized use of natural lighting, and solar panels add value to a home
- Investment potential— a property that appeals to investors on rentals or for resale gains some extra points in valuation.
- Potential for customization—many buyers put a premium on residences that they can easily renovate to reflect their tastes and preferences.
- Location— valuation of property scales upwards the nearer it is to local points of interest; the quality of its neighborhood also counts in the property value.
- Demographics— the age range of the population in the property’s community helps mold market demand and hence home value.
- Interest rates— property valuations can hinge on lending rates that fluctuate depending on credit demand and banking and finance performance
- The economy— the value of properties hinges on fundamental economic factors such as job generation, wage growth, stock market performance, foreign exchange climate, population gain, unemployment rates, etc.
- Demand and supply scenario— shifts in buying demand and the supply of available properties significantly impact property valuations over time.
Property valuer qualifications
To wade through all these complexities, you need will definitely need a professional property valuer with expert experience in your local area. Your top candidate should be a graduate of Bachelor of Property and Real Estate. Graduates of this property course are trained not only on the basics of property valuation. They are also exposed to the other rudiments of the real estate industry including property management and sales.
Furthermore, be sure to seek out a property valuer who is a registered member of a valuation-based institute to ensure that will be meeting the requirements, and ethical standards and procedures. This will mean you are getting the right advice from a property expert who is bound by his professional duty.
As a recommendation, the property valuer that you should look for is a professional registered with the Australian Property Institute (API). Notably, only graduates of Bachelor of Property and Real Estate are eligible for API certification. The ideal property valuers should also have prior experience working as a real estate agent or property officer.
Their scope of experience in the profession is certainly important when choosing from amongst property valuers. The smart choice would be a professional who has the expertise and exposure in valuations not only for residential properties. Great candidates to consider are those who are also competent in land valuation, as well as assessing commercial, developmental and industrial properties.
Look for a property valuer who is up to date and tech-savvy. The valuer you can rely on should have the expertise in mass appraisal techniques and be competent in a range of valuation databases for their research. With this capability, the property valuer can assist you in looking at comparable properties with yours.
Such input is vital if you plan to sell or rent out your real estate holding. Having this information at your fingertips is likewise essential in valuations required for property redevelopment and seeking its insurance coverage as well as determining your tax obligations. Be sure to contact the expert team of property valuers, for professional advice, expert knowledge and a comprehensive valuation report that will suit your valuation requirements.