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Property Valuation and its benefits

June 3, 2022

 

Want to know the true market value of your home? Are you thinking of selling and want to set a competitive price? Then a property valuation is a right place to start.

What is a property valuation?

Defined as a process in which a valuer will determine the value of a property by conducting an inspection and documenting all the findings in a legally binding report, keeping in mind when choosing the right valuer, it's important to have someone qualified and experienced in the field of all property related purposes, this key to getting a valuation report you can rely on. Whether your valuation is residential, commercial or industrial related it's important to understand what outcome you are looking for and that will then be determined by the type of valuation service you will receive.

Why is a valuation important when selling property?

A helpful and essential tool to have when your getting ready to sell. Knowing the true value of your property within the current market will help set your expectations, avoid mortgage payments regrets and to ensure you choose the right insurance cover aswell.

Let’s break it down:

  • When you value a property it can help you make any informed decisions. if you have had an renovations completed recently or any structural changes to the property, this will also have an impact of your property valuation outcome.
  • A valuation can help set a competitive price when selling your property, you may even be surprised just how much your property could sell for, this will stop you from underestimating what potential buyers would pay for your property.

With a valuers experience and knowledge within the industry, you can guarantee they will point out any aspects of your property that could potentially reduce or increase the valuation. Giving you insight into what upgrades or renovations would bring in greater value to your property when it comes time to sell or what potential buyers may be diterd by.

Our valuers are highly qualified API accredited professionals, choosing only the best in their specialised field of valuations whether thats, residential, commercial/industrial or business related. We guarantee to find you a valuer best suited to your property related purpose, and ensuring you receive a report for the best outcome for your property aswell as your financial needs.

A property valuation can be used for various reasons.

  • current market value
  • capital gains tax
  • family law court
  • stamp duty
  • pre-sale/pre-purchase advice
  • related party transfer

The list goes on, no matter your purpose we are able to complete a valuation for you.

Most common property valuation questions asked?

we always get asked, why do i need to have my property valued regularly? when it comes to property valuations is a complicated topic, but in saying that they play an important role in how you can manage your investment. when it comes to homeowners, some may not feel the need to know about all the calculations, where others prefer to know more information about the value to help make informed decisions based on accurater and current data.

knowing what goes into a current valuation report can be beneficial for you, because valuations can be complex and understanding what service would best suit your purpose its good to know what type of methods are used and this can give you an idea of what service would best suit you needs.

There are multiple methods used in property valuations

  • The Comparison
  • Profits
  • Residual
  • Contractors
  • Investment

When calculating the true value, a property valuer can use multiple methods to calculate the value, this will be determined depending on the property being commercial or residential.

 

Comparison Method

Most Commonly used, for property types such as houses, shops, offices, and standard warehouses.

Profits Method

If there are no comparable variable such as rental/sales transactions available to determine the value this method can be applied. Used for pubs, hotels, and nursing homes.

Residual Method

Development potential or vacant land thats current use will be changing for more profitable use.

Investment Method

where a tenant provides a return on investment for the landlord, this method is used to determine the market value of a property that is freehold/leasehold from the potential to generate future income.

Contractor Method

Only used when the other methods cannot be used. A cost approach method of valuation, depending on the situation and the type of property This method is referred to as the “last resort”, a cost approach method of valuation depending on the situation and property type.

its essential to have a clear knowledge of the multiple methods used to value a property, for buyers, having a valuation can reduce the risk of purchasing a property for more that its true market value. for sellers, its no doubt why you wouldnt choose a valuation, most commonly used to give you insight into your property value for a potential selling price, and secondly giving you the opportunity to make any improvements which can add value to your property.

 

whether you are a property owner or first-time buyer/investor, its beneficial to know all the ins and outs of the property as well as the market. at the end of the day, property can be your biggest asset and we can recommend how important a valuation can be in the first step to any decisions you wish to make.

Their are multiple property-related circumstances to why a valuation is required. thats why we recommended seeking out advice to help determine the valuation service that can be best tailored to your property related requirements. keeping in mind the market is ever-changing so its important that you stay ahead of the rest and know where you stand financially, at the end of the day we all want to increase the value of the property for a good return on your investment.

 

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Kerryn Lee
Kerryn Lee is an API qualified property valuer with upwards of 20 years’ experience working in the Adelaide property market. Her expertise spans over all property types and sizes, and includes specialisation in litigation, compensation and Family Law Court property valuations. Using this experience, Kerryn has completed valuations on large scale properties within South Australia valued over $10 million.

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