A property valuer's job is to assess the overall market value of a property. Certified property valuers in Tasmania are employed to do an extensive review of the property before calculating its worth.
Valuers account for numerous components in determining value. These components include:
- Location
- Size
- Condition
- Features, and
- Renovations or upgrades.
Additionally, valuers also take into account current local market conditions, like supply and demand data and the economic context. The comparison method is crucial to determining value. It’s a process by which similar properties in the near vicinity are compared to the subject being valued. Adjustments are made to the potential overall value by considering the differences in the property too and how that may affect value.
The effect physical characteristics have on a valuation
There are many factors outside of the property itself that contribute to an appraisal outcome. However, the subject property plays a significant role in what valuers look for when considering true market value.
Factors like size, layout, condition, age, and architectural style all contribute to the appeal of a piece of real estate. For example, the size of a property affects value because this is a major consideration for potential homeowner. Size determines how accommodating a space may be. Layout informs on practicality and the quality of the living space. Properties with abundant space, more rooms, bathrooms and well-designed layouts are typically valued higher.
A property's condition includes its structural integrity and is taken into consideration for repair costs on the part of a buyer or investor. Maintenance history and aesthetic appeal are also associated with the appreciating value of a residence and as a result, affect overall value. Generally, modern properties with new upgrades or renovations have a higher likelihood of being valued high.
Factors that noticeably improve valuation outcomes
There are ways for you to slowly increase your odds of receiving a positive property valuation over time. Making sure you maintain your commercial or residential property is a great investment in appreciating property value.
This includes more serious maintenance, like protecting the structural integrity of your property or cheaper concerns like appearance. If anything needs to be repaired, act fast to avoid further degradation.
It is essential to be present during the inspection. This gives you the opportunity to provide additional information and proof, as well as address any questions a valuer may have.
How extensive is a property valuation?
Valuers consider more than just a few factors to arrive at a market value estimate. Property valuation reports are detailed with exhaustive examinations of numerous contributing components. Firstly, the property itself and the current market and economic context are considered.
Many aspects affect how comprehensive a valuation becomes but they all require a similar process. An inspection is completed to examine the conditions, features, and any recent renovations or improvements are all examined. Anything that requires repair or that may cost a buyer will affect value and valuers rigorously assess all features to check they’re accounted for.
A valuer is required by regulatory organisations to evaluate all factors concerning the subject real estate. This includes its size, layout, zoning, and legal considerations to name a few. Extensive market research and analysis are a necessity. Valuers must gain a thorough understanding of the local market, which includes sales data, economic factors, property trends and other may other influencing factors.
Conclusion
There are several physical and contextual aspects valuers look out for before compiling a final report on a property’s market value. It’s clear physical characteristics play a large role and that you as a client you can aid in ensuring you receive the best valuation possible.
On the other hand, countless external factors out of the control of the client and the valuer affect overall value. It’s safe to say that what valuers look for and what influences real estate worth is immense. For this reason, managing one’s expectations cannot be stressed enough.
Valuations are scrupulous for good reason. Property holds a lot of financial value and it plays a large role in financial stability and financial planning. Therefore, it’s fair to say that it is important to educate yourself on what influences the worth of your valuable assets to allow for proactive solutions.
Contact us for any further information on real estate valuations and we’ll be happy to assist you.
