It’s essential to get a general idea of the property’s value whether you intend to buy or sell your current property. An accurate property appraisal is an essential step in the purchasing and selling process. You must determine the price you might pay for the new home and the increase or decrease in value since you first bought it.

Property valuations basically tell you how much you might expect to get for your house in a fair market sale. Arm’s length transactions, at its most fundamental, are affairs that take place between two unrelated persons acting in their own self-interest.

Property valuations establish an approximate market value for your home at a given time. These evaluations often take the form of a report and contain the following details: 

  • A thorough description of the property and the process utilised to conduct the value; 
  • Market data for similar properties; 
  • The calculations that were used to arrive at the valuation.

What is the difference between Pre-purchase Property Valuations and Stamp Duty Property Valuations?

Stamp Duty Property Valuations can be useful in situations where the property is being transferred between owners and ownership entities like trusts while Pre-Purchase Property Valuations can help you decide how much to offer for a house you’re interested in buying. Fair market value estimations are given for stamp duty because it is a big expense and to make sure you don’t spend more than is necessary.

Property Valuations are useful for the following:

  • Lenders 

Property valuations can be used by mortgage brokers to ensure that they will be able to recover any debt in the event that a borrower defaults on their loan. Therefore, property valuations play a significant role in risk analysis. 

  • Taxes 

Instead of predicting how much money the property will bring in when it is sold, it is typical to use a market assessment valuation to determine the amount of tax levied on your property. A property valuer looks at a number of different factors, such as any improvements, renovations, or repairs that have been made to the property, to determine the market assessment value of the property. The revenue an owner obtains from renting out the property and any others that have lately been priced in the same range will also be taken into account.

  • Buyers and Sellers

Buyers should be informed that property appraisals might lessen the possibility that they would overpay for a home relative to its actual market value. Property valuations provide a notion of a projected selling price, which sellers should be aware of. You can choose the most favourable moment to sell your house if you know how much you could make from the sale.

What are Property Valuations and Property Appraisals?

Property Appraisals are a kind of informal valuation often offered without charge to the customer by a real estate specialist. They are typically based on recent sales data and are not in any way enforced by law while Property Valuations are performed by qualified and licenced valuers. The services offered by these experts are typically compensated. Property assessments are documents that are legally binding and are based on the valuer’s assessment of pertinent factors.

Always choose an independent valuer which is not related to the buyer or seller so that it will not have a vested interest in the property.

How much does it usually cost?

It usually costs between $300-$600. However, the price varies based on the value and size of the property and the rates of an independent valuer. 

What are the factors that the valuer considers?

  • Size of the property
  • Furniture and fixtures of the property
  • Location and surroundings
  • Architectural
  • Quantity and type of rooms of the property
  • Local council zoning regulations
  • Market conditions and value

If you are interested to know more about Property Valuations, Micah Finance Solutions can help you. Schedule a free consultation today.