A property valuation is when a qualified valuer assesses certain aspects of a property to determine its “value” – the price is it likley to sell for.
This is different to a market appraisal from an estate agent.
A property valuation is generally conducted on a request by you, or a lending institution (such as a bank) who is is looking to fund the purchase of a property.
Normally produced as a report, a property valuation includes property information – rates, size of the land and building, physical details on the construction and condition of the dwelling, details on any immediate issues that may need addressing – as well as information on comparative sales in the area.
Property valuations can cost you anywhere between $100-$600 and there are certain factors which are used to help valuers determine the value of a property:-
- The location of the property
- The size of the property and any land associated with the property
- The building structure and its condition as well as any improvements, upgrades, repairs or extensions
- The local council zoning
- The standard of the fittings and fixtures
- The state of the local property market
For a valuer to do their job, they generally need to visit and inspect the property noting its condition, size and improvements. However sometimes they just do a drive by valuation (not entering the property) or a desk top valuation (gaining information from databases.) Clearly these types of valuations will be less accurate.
Property valuation vs market appraisal
Many people confuse property valuations and market appraisals.
Real estate agents often give you an appraisal on your property when trying to gain your listing. They base their appraisals on other sales in the area and their experience.
This is different from a valuation carried out by a licensed valuer, who has to base their report on facts as they are legally responsible for the information they provide. The estate agent is using the same factors to determine the “market appraisal” but is usually looking to get the highest possible price for a property to gain the listing (the right to sell the property for the vendor.)
If you are looking at selling, buying or refinancing a dwelling, a property valuation will help you determine what your property is really worth. Of course you could always ask the property strategists at Metropole for a market appraisal. As they have no properties for sale, but access to industry databases as well as on the ground experience as Australia’s largest buyers agency, they will be able to give you an independent and unbiased opinion.« Back to Glossary Index