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Your first dream house should be everything that you imagined and more! A lot of careful research and scrutiny is put in identifying the perfect first dream house to purchase, rent, lease, or invest in.
Apart from the diligent inquiry into the size, style, and design of the house, there are necessary and prudent actions to take to secure the right deal. One of these pre-requisites is property valuation.
Valuation of the intended property before any transaction suffices is one of the hallmarks of due diligence. There are several types of valuations namely:
1. Independent Valuation
This is whereby professional firms or individuals specialize in the valuation of the property. They give their own impartial opinion based on their personal assessment of things.
Perth Properties is one of the leading firms that provide excellent personalized valuation experiences that are accurate and timely.
2. Bank Valuation
There are several bank transactions that have a large interplay with the property. Common examples are in mortgages or ordinary loan applications where the property is issued as collateral.
In these instances, the bank assesses the property in order to determine the extent of risk and value it. From the valuation, the bank may proceed to either accept or decline the loan application.
3. Automated Price estimate
This is whereby a standard price is pre-fixed to a given property with respect to the location, type, and current property market status quo.
The metric of this valuation is largely digitized and needs no physical visits to the identified area.
However, this type of valuation may not be suitable as they give a blanket assessment to properties which may lead to an under-valuation or over-valuation.
Why Do We Value Property?
Property valuation ascertains the market value of the property thus enabling an assessment of whether the transaction is a good investment or not.
A good investment is one that appreciates over a period of time, allowing the purchaser to either sell or lease it out, at a higher price than that which he initially used in acquiring it. It also allows the person to secure a larger loan if the property is held as collateral.
A bad investment, however, leads to great financial loss as the market value of the property either stagnates or plements with time.
Due to the high risks and equally high possibilities of success attached to the enterprise, valuation has sufficed as an integral part of due diligence.
The careful valuation of any piece of property is one of the most tried and tested ways to climb up the real estate ladder and gain a robust and diverse investment portfolio. This ultimately translates into a higher economic position and financial gain.
How to Select the Right Property Value
The selection of competent property value to embark on an independent valuation of the property is vital. The following features may help you make a correct determination.
Professionalism
Valuation is an intricate exercise that requires one to be appraised with several fields pertinent or incidental to landholding. It requires trained personnel and those specialized and refined through lengthy experience.
Choose a valuer who has the requisite training and if possible adequate experience in the valuation of real property.
Quick turnaround times
A valuer, who keeps within the given timeframes and meets deadlines, is a promising one. Time is crucial in property transactions. Delayed valuation may lead to loss of opportunity to make a sale or purchase the property.
Choose a valuer who is timely in execution. You can read through the comments of their customers to establish if this is the case or alternatively ask them how much time they may take to finalize the specified transaction.
Accuracy and comprehensiveness of valuation reports
Reports should be detailed and comprehensive. They should entail actionable information and transparently depict what went in the determination of the property’s value.
Quality of their customer care services
Inquire as to whether, you can be allowed to call in and ask a few questions, whether there are trained personnel on standby to give you the necessary information you need when you need it.
Value for money/ Affordability
Look into the charges and rates of service stipulated and assess whether the rates reasonable and justifiable based on the quality of services promised.
Role of the Right Property Valuer
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Helps you identify the needed information for the valuation
During on-site visits information pertaining to the infrastructure, building design and environmental issues relating to the building will be needed to facilitate a more accurate valuation.
This is usually communicated by the valuer from the onset.
Researches the area
A valuer investigates the area in which the land is located, in order to determine whether the surroundings may negatively or positively affect the value of the property.
Properties located in luxurious suburbs are valued higher than similar properties located in rural areas.
Consider comparable sales
Consideration of approximately up to five comparable sales within the same locale helps to fine-tune the valuation exercise.
A more accurate price range is determined that mirrors that of the other sales. This prevents over-valuation or under-valuation.
Independent valuation
Unlike real estate agents who may sway you with mere sales talk about a given piece of property, an independent valuer gives an impartial and objective assessment of the actual value of the house.
Their reports are more trustworthy than that of real estate agents who simply want to make a sale.
Competent Advice
Off the valuation, a proper valuer may offer feasible advice on the risks or potential gain of a given home investment. They serve to present all perspectives that help you make a more informed decision.
Handle all incidental tax matters
Valuers such as Perth properties wcvaluers.com.au additionally offer tax return services, making them a one-stop-shop for all your real estate investment needs.
