What’s your home worth? If you want an independent view of its market value, you should consider engaging a qualified valuer – but precisely what will they look for when they inspect your home?
Peter Boehm is a Yahoo Finance columnist, property and finance expert and a leader in Yahoo Finance.
It’s their job to estimate the price that you could realistically achieve if the property was given reasonable marketing, was looking to be sold within 90 days, and was sold in an arms-length transaction between a willing buyer and a willing seller.
Boehm explained, “Valuations are professional opinions that have been based on science and art.” They account for both tangible and intangible elements of the property.
An inspection of the property’s exterior and interior is essential for a thorough and comprehensive valuation. It takes approximately 48 hours to prepare a standard three-page report. Prices will vary depending on the property type and format. For properties of average size, the cost is $300 plus GST.
What do property appraisers look for in a home?
Boehm said that these are the most important attributes they will be looking at:
- Architectural style
- The block’s topography.
- Dimensions of the land
- The proximity to schools, public transport, and shops
- There are multiple rooms: bedrooms, bathrooms, and a large kitchen.
- Potential for renovation and/or development
- Your residence’s size and layout
Boehm explains that property valuers can use two methods to determine the value of your property.
According to him, the direct comparison method is best. It allows you to compare properties that have been sold within the past six months with your property.
“The comparability property serves as a valuation guide. It allows the valuers compare like-withlike and to adjust if the properties have a material distinction.”
The second, or the summation involves adding the land values to the land improvements. These include the house, garages, garages, pergolas, and garages.
Boehm explained that land value is a combination of its size, shape, and location. It also includes the existing infrastructure and any amendments. “The age, style, architectural features, as well as the number of rooms, renovations, and overall appearance, determine the value.
WBP Property Group uses a combination both of these methods in order to determine a range. Then, they draw on their skills and experience to arrive at a valuation figure.
If you obtain a valuation on a property you’re planning to buy, it can help determine your upper limit when making an offer or bidding at auction.
“Normally the valuation will come in around the purchase price – after all, that’s what the market is willing to pay,” Boehm says. You might find that the valuation comes in lower than or higher than what you paid for, which could indicate that you have bought too much or gotten a bargain.