The most common question an investor may ask is “How much is my home worth?” property valuations are often used to give us an idea as to what the property is worth. Consider getting an independent valuation of your property, as it gives you true value of your property – even before you finish negotiations. Here are 5 other truths about Property Valuations:
It is not an appraisal. A real estate agent’s appraisal may be higher than the market value, but this is not the valuation that will be accepted by the banks. Be careful with some real estate agents as they often do this just to secure a listing.
Valuations are not an exact science. Property valuations are subjective assessments of valuers. If the value of the property is too high and the bank loses money, the valuer may also be legally liable.
There are several types of Valuations. RP data has categorized these into 4 different types of valuations, namely: Full Valuation, Short term, Restricted and Desktop valuations.
Comparables are a major factor in valuing your property. To come up with your property value, valuers rely on nearby properties that are of the same type.
You can raise the value of your property. Provide the valuer with all the details of the property, whether it is a new renovation and other improvements you’ve undertaken.
Read more about this on the Property Observer website.