What Do Valuers Look For When Checking a Property?

Do you have a property you wish to sell but don't know how to price it appropriately? Discussing this matter with property valuers will help you learn how to place a reasonable price on your property.  However, it's important to note that there are various aspects you need to consider in pricing a property. In this article, you'll learn what property valuation is and what valuers look for in determining a property's price. 

What Is Property Valuation?

Property valuation is an assessment of a property's worth. It is the process of discovering the value of real estate properties or other valuable assets to ascertain whether these can be bought and sold at a certain price. 

The accredited valuer writes a report about the property concerned. In line with this, a valuer must be registered and have accomplished the required training. Then, mortgage lenders utilize their services to ensure that the property is acceptable security for a loan and the market value is adequate in covering the mortgage in case of a forced sale. The report will also include the following: 

       ·       Risk ratings that include environmental and market risks

       ·       Overall condition of the property – whether it’s newly renovated and built or a few damages are present

       ·       A detailed description – including the number of rooms and land size

       ·       Comparable sales on similar markets or locations

       ·       Other issues found during the property inspection

What Valuers Check During Property Valuation

Real estate valuation takes into account several factors that influence the purchase price of properties. These include the current condition, income and debts, quality of local or regional location and state taxes, local government policies, land use, and infrastructural features of the property being valuated. 

To look at each aspect in detail, valuers check the following before placing a price on a property:

       1.       Location

In real estate, location is everything, including the current market value and condition of your property. Valuers use location as the primary basis in comparing the price of other recently sold properties, to your property. This approach is called the direct comparison method. This method involves analyzing the recent sales of properties in your local area over the past six months or so. They use this information and compare the same with your property. 

Aside from that, the price of your property is also affected by the amenities surrounding it. If you're in a prime location, such as when your property is near parks, malls, hospitals, and schools - chances are, your property will be priced higher. 

       2.       Land Size And Topography

It's no secret that larger land sizes are priced higher. However, valuers also look into its dimensions and topography. Valuers will consider your property's positioning and the view surrounding it.

The impressive size of your property won’t matter if it's located beside a busy highway, since the noise will be an issue. Another example is if your property has a sharp slope. Having these features will make your property difficult to sell. 

       3.       Interior Design And Condition

The valuer will also look at the property's interior condition and use it to price the property accordingly. Valuers place considerable importance on kitchens and bathrooms because homebuyers generally prioritize these spaces. Valuers will consider the storage, fittings, and the overall dimension of these areas. 

       4.       Overall Condition Of The Property

Valuers finalize their evaluation by examining the overall state and layout of the property. A well-maintained property can make all the difference in the final price. General condition and presentation include the curb appeal, quality of the fixtures, furniture, and appliances if these are included in the sale. 

Summary

Property valuation is simply the process of determining the assessed value for a property. Now that you know the aspects valuers look for in checking a property, it’s also crucial to read about the importance of receiving a proper valuation before selling. Several factors affect the price, like location, land size and topography, and the overall condition of the property.