Property valuation is a real estate service that is very popular in the West. Thanks to its advantages, the service is slowly being adopted by the Australian real estate market.
Property valuation is a method of accurately analyzing the value of any property. Real estate or home appraisers begin by visiting the premises and noting the basic details of the property. They take various factors and existing data into account and provide you with a retrospective property valuation
report that you can use whenever you want to sell, rent or take out a loan on your property.
Now it is easy to opt for online property valuation services and get your property valued in any part of the country by the top experts in the field.
Why is retrospective property valuation important?
There are various scenarios where property valuation and the report generated becomes very important.
Let’s say you want to sell your house. You consult with friends and family and decide on the sale price of the house. Your buyers are not agree about the costs and are asking you to reduce them. How do you know how much to negotiate? A home appraisal report will give you an accurate idea of what a home is worth at any given time. You can keep it as a reference and negotiate.
Consider another scenario here. You are planning to buy a second-hand apartment. Before making such a significant investment, you want to know how much the apartment is worth. Carrying out a lump sum valuation will give you peace of mind and help you decide on the right purchase price.
You may also need a retrospective property valuation report if you decide to get a bank loan or mortgage.
A property valuation will help you understand any additional expenses you may incur, including taxes, registration fees and stamp duty.
Different retrospective property valuation methods
Property appraisal involves many factors. These may include issues of safety, ease of commuting, convenience the property offers, proximity to major sites and quality of construction. Some properties built beautifully on large lots may be valued less because of their location, while small buildings in the heart of the city may be valued more.
Buildings near infrastructure development, SEZs are valued more, while properties in locations designated as hazardous may have lower valuations.
Once you decide to have a property appraised, the appraiser may use one of the methods below depending on the type of property, its location and intended use.
Comparative method
The comparison method is use when you plan to buy a property with the intention of staying in it. Here, the appraiser compares the current market value of real estate and land in that region and uses it to create a valuation report. This is one of the most commonly use home valuation methods.
Profitable method
If you want to buy, rent or lease a property to run a business in, then the value of the property must match the gross earnings and help the business generate domestic profits. So the appraiser calculates the capital value of the property based on gross income and operating expenses.
Cost method
In the event that comparative property prices or appraisals are not available, appraisers will use the cost method to value the home. Here, they will analyze the average cost of buying land and building a similar property in the area and use it as a comparison to evaluate the property.
Residual method
The residual method is use for properties that are purchase with the intention of renovating or making changes to increase their value. Most development properties and properties purchase as investments are value using the residual method. Here, the value of the property is calculate taking into account the possible profits it can get in the future.
Who Should Use Real Estate Appraisal Services?
The following are the types of people who will need to opt for home valuation services.
- Seller – If you want to offer a specific property for sale, it will be a very smart move to seek the help of a professional who can create a property valuation report. Thanks to this, you will know what the property is worth and you can avoid underselling it. Your buyers cannot underestimate you because you have professionally calculated values in hand.
- Real Estate Investor – If you are a real estate investor, then online real estate appraisal services will help you identify properties that are worth your money. Current prices and future trends can find in the retrospective property valuation report.
- Property Taxpayer – As a taxpayer, do you feel like you pay more property tax than your neighbors? A valuation report can provide you with the correct information and reduce your tax burden.
- Buyer – If you are a buyer, it is very important that you know if the property you are spending money on is worth the financial commitment. You may also need a valuation report to get a bank loan.
- Businesses – Businesses that plan to expand their bases need the right location. What would happen if the rent, lease or mortgage you end up paying for the space causes a financial strain each month? Avoid this by having an earnings method valuation.
Property Valuation Adelaide Services
The experts at Property Valuation Adelaide offer comprehensive property valuation services and ensure your money is invested in the right place. Here are some of the services.
Appraisal and inspection of the property – Experts will carefully measure the area of the land and the building and attach the relevant pictures to these measurements. They will then assess other details such as the condition of the property and the quality of fixtures, fittings, floors, roofs, walls and overall construction. They also identify extras like parking space and landscaping and use a custom building valuation calculator to make the correct valuations.
Site Assessment – This will include a thorough review of the site, its proximity to major landmarks in the area, number of educational institutions and hospitals in the area, range of entertainment, safety and security issues and circle rates.
Recommendations and Final Report Submission – Property Valuation Adelaide experts will offer their recommendations on property value and prospects. They can advise you on buying or selling, investing in renovations if necessary or looking for better options. The final online property valuation report will include a detailed analysis of the property in written form.
