Getting a property valuation is an important part of buying or selling real estate. The valuation gives you critical information about the current market value of your property. This helps guide negotiations and ensure you get the best price.
Before getting a property valuation, here are 10 key things to keep in mind:
1. Choose the Right Valuer
Pick an experienced, licensed valuer with local expertise. They should understand recent sales and market trends in your area. Avoid cheap valuations from online tools as they lack accuracy. The extra cost of an expert valuer is worth it.
2. Consider the Purpose
Are you selling, buying, inheriting, splitting assets or getting a mortgage? Each scenario requires a tailored valuation approach. Tell the valuer so they evaluate appropriately. A divorce valuation is different to a pre-sale valuation for example.
3. Provide Detailed Information
Give the valuer as much information about the property as possible. This includes floor plans, the number of bedrooms/bathrooms, pool or no pool, recent renovations, furnishings etc. The more they know, the more accurate the valuation.
4. Inspect Accessibility
Ensure the valuer can access all parts of the inside and outside of the property. Move vehicles, trim trees, tidy yards and make sure all doors are open. This facilitates a comprehensive valuation inspection.
5. Disclose Problems
Be upfront about any structural, electrical, plumbing or other issues on the property. Attempting to hide problems may result in serious financial consequences down the track.
6. Consider External Factors
Advise the valuer about upcoming local developments, rezoning plans or infrastructure projects which could influence property prices. Positive and negative externalities impact valuations.
7. Compare Multiple Quotes
Get quotes from at least two to three licensed valuers for comparison. Avoid going with the highest quote unless the valuer provides strong rationale. Look for consensus on price range.
8. Interpret the Report
Read the property valuation report closely to understand the valuer’s reasoning, data sources and price justification. Ask questions to clarify anything that is unclear.
9. Valuate Regularly
Markets shift, so valuations go stale over time. Revaluate every 2-3 years to keep pace with market changes. This provides helpful trend data on your property’s value.
10. Negotiate Wisely
A valuation is an expert guide, not the final word. Use it to negotiate effectively with buyers and sellers, alongside other market data. Don’t get fixated on beating the valuation at all costs.
Getting a thorough property valuation from a reputable local valuer sets you up to maximise your real estate dealings. With these tips in mind, you can make the most of the process.