Whether you are buying or selling a home, it is important to know the importance of property valuation. It can help you know the market value of a property based on location, condition and other key factors. The best part is that property valuation will be calculated by a highly-trained surveyor who will prepare notes and take photographs to help create a valuation report. This report can help you make property buying or selling decision at the right time. Since the Brisbane real estate market is competitive, make sure you calculate the property’s value and make the most out of your investment. Here is a complete guide to help you understand the concept of property valuation and the right way to calculate it. Let’s Get Started!
What is a Property Valuation?
It is a comprehensive report of a property (commercial and residential)’s market value. A property valuation is the process of assessment of your property’s value which is completely based on location, condition, market trends and other aspects. This is crucial when selling your home. A professional surveyor will come to your place, inspect every nook and crannies and prepare a valuation report using notes and photographs as evidence. You can use this report when you price your property when selling in the Brisbane market.When Would You Need a Property Valuation?
There is no denying that a property valuation offers great benefits to both seller and buyer. The precise property’s value in the real estate market helps reduce the risk of potential buyers. They don’t need to worry about paying over the odds when buying a property. On the other hand, it allows the seller to identify the areas that need renovation or improvement to boost the property’s market value. However, the most common reason people require a property valuation is because a bank or mortgage lender wants it before sanctioning your loan. A detailed property valuation report enables mortgage lender to ensure whether the property has the potential to cover the loan or not. This will help you secure a commercial property loan or residential mortgage without any hassle. These are also required for financial reporting, taxation compliance and deciding the amount of compensation for land acquisition.How a Property Valuation is Calculated?
The property valuation is calculated depending on the following factors, including:- The property’s size
- The number and type of rooms
- Structural condition
- Architectural style
- Fixtures and fittings
- The fit-out’s standard
- Easy access to the property
- Planning restrictions
- Local council zoning
- Location
- Amenities
- The topography aspect
