Property valuation is complicated and confusing, and much is at stake. Be 100% sure you’re doing it right. If you don’t do your property valuation correctly, you could be embarrassed or miss out on millions of pounds of profit in front of potential investors.
Finding the perfect property valuation agency is essential. You want someone with all the right qualities. You don’t want to hire anyone who’s going to come in, work half-heartedly and give you a poor valuation that could jeopardize your business. Melbourne Property Valuers Metro ensures you get the correct property valuation. If you’re looking to get a property professionally valued, here are some dos and don’ts:
Get Your Homework Done
Before looking for your dream home, research what similar homes in the same neighborhood have sold for recently. It helps you understand what price range you should aim for when listing your house for sale.
After doing some research on your own, you should reach out to an appraiser or real estate agent who can provide you with an accurate estimate of the value of your home.
Also, talk with a real estate agent to provide additional information regarding selling prices, financing options, etc., which will help you choose the best one for yourself.
Get an Inspection
A professional home inspector can tell you about any problems with the property that might affect its value — problems like termites or foundation issues that could be costly to fix. If there are no significant issues with the house, it will only help boost its value in selling.
Ask for a List of Comparable Properties In the Area
A real estate agent or appraiser can provide this list; otherwise, search for similar properties in your area online. Ensure you have enough data to make an accurate comparison. The more comparable properties there are, the more accurate your valuation will be.
Once you have these lists, look at some other factors that might affect the price of your home:
- Location — Is your house in an area with good schools? Has it been renovated recently? These things can affect the price of any house in an area.
- Condition — Is your house well-maintained? Does it need repairs? It could affect its resale value down the line.
- Size — How many bedrooms does it have? How many bathrooms? How large is the lot? The larger the home and lot, the more money it will cost for upkeep and maintenance.
Don’t Value It as If It Was an Investment
Valuing property is not like valuing stocks and bonds; it’s not a matter of profit or loss. It’s a matter of what someone may pay for it. It’s not just about what the seller wants to get out of it; it’s also about what the buyer thinks they’ll get into it!
Don’t Listen to the Wrong People
Don’t listen to friends and family: Do you know someone who has bought or sold a house recently? If so, don’t ask them how much they paid or what they think your house is worth. Their personal experience might bias their answer. It can also be inaccurate because they don’t know all the property details or the market.
Also, don’t listen to neighbors: Your neighbors might have good intentions when they offer advice about selling your house, but their opinion isn’t always accurate either. They may not know enough about local listings or recent sales in your neighborhood.
You may think that because this house has “so much potential” and is “so close to downtown,” it must be worth more than other homes in the area — but that’s not always true!
It’s tempting to make your house seem more attractive by overvaluing it, but this could lead to problems if you need to sell quickly or take out a loan against your home. If potential buyers find out that your house isn’t worth as much as they thought it was, they might walk away from negotiations unless you lower your asking price significantly.
And if lenders find out that your house isn’t worth what you said it was worth, they may reject your mortgage application or demand additional collateral before approving the loan.
Don’t Make Decisions Emotionally
If you’re buying your first house, you may be nervous about making the wrong decision. It’s important to keep your emotions out of the equation during this process, or else you’ll likely overpay for a property that doesn’t match your needs or desires.
Verify the value of your property by getting an appraisal. Without this, you are just guessing at the worth of your property. Next, always perform the valuation during good market conditions and know the trends in your area concerning similar properties. Finally, be aware that always remember that value is measured by what a willing buyer and a willing seller can agree. Don’t get stuck on one number!