This is such a popular topic, particularly as our local Gladstone market is picking up and we see more and more people seeking to know what their property is worth in the current conditions. So let’s take a look at what each of these mean, and why you may need this service.
WHAT IS A PROPERTY VALUATION?
A property valuation offers benefits to both buyer and seller. In providing a clear indication of a property’s market value and a detailed analysis of a property’s weakness, it reduces a buyer’s risk of paying over the odds for a property.
WHY SHOULD I GET A PROPERTY VALUATION?
The most common reason why people need a property valuation is because their mortgage lender (usually a bank) requests one.
Market prices can vary and change over time so it is necessary to compare the property with similar properties in the same location that have sold in the previous 3 to 6 months.
A valuer will take many factors into consideration when working out the value of a property, including type, physical location, size, building structure and condition, access, planning restrictions, zoning, and caveats or encumbrances.
WHAT IS A PROPERTY APPRAISAL?
A market appraisal differs from a property valuation. It’s a less formal estimate of your property carried out by your local real estate agent, rather than a valuer. It can help a seller decide which renovations to make to enhance a property’s value.
If you find a real estate agent with extensive experience in the market, they will be able to provide the best property estimate. Plus – they’re free!
WHY SHOULD I GET A PROPERTY APPRAISAL?
There are a number of reasons why you might wish to get your property valued. The first is to get a clear idea of its house market value prior to selling – so you don’t get any nasty shocks further down the line.
If you’ve lived in your property for a number of years and made improvements, the chances are that its recommended asking price will have increased – but this isn’t always the case.
Another good time to get a house valuation is prior to refinancing. Most lenders will arrange for their own property estimate but having a second opinion will help you to be better informed and may put you in a better position to select the right provider.
You might also wish to get a real estate market appraisal and a valuation prior to making a will, to help you understand the monetary worth of the asset you are bestowing and to ensure that you will be distributing your estate fairly.
ADVANTAGE OF AN EXPERIENCED AGENT
I have been in Gladstone Real Estate now for 20 years, and as a homeowner, I can understand your current position and answer questions you may have about the valuation and appraisal process. Over the years, I have seen property valuations performed that resulted in the owners contract falling over because the value did not meet the contract price; this is always disappointing to all parties involved. With any valuation there is an element of risk, so ensure that the appointed valuer is suitably qualified and inspects the property in person.
If you have any questions, or wish to arrange a complimentary appraisal for your property, get in touch with Jenny Kulikov on 0472 543 382.