What is a property valuation?
There are many reasons why you might need a Property Valuations Sydney property appraisal, especially when selling or buying a property. Below we explain what a real estate appraisal is, who performs it and why you might need it.
What is a property valuation?
What is a property appraisal?
A property valuation is an assessment of the value of your property, based on location, condition, and many other factors. Your assessment will be done in person by an expert who will take notes and photographs, and then send you a property valuation report.
You can use this when you value your property to put it on the market, if you are separating from a partner who owns part of your property, or when it is a succession.
Who performs a real estate appraisal?
An expert or architect will carry out his assessment, since he will consider elements such as storage, age, size, wear and distribution of the room to approximate an adequate figure. They will also look for similar properties in the area and consider what the market is like.
Is this different from my mortgage lender’s valuation?
The valuation of a mortgage lender is not the same as the property valuation. While the purpose of a property valuation is to determine the market value of a property based on size, location, condition, and a variety of other factors, a mortgage lender’s valuation is a less in-depth assessment of the value of the property and is for the exclusive use of the mortgage lender.
A mortgage lender’s valuation is primarily to verify that the property is worth its value. For example, if you are buying a home at a price of 300,000 but the mortgage appraisal puts the value of the house at 250,000, they will only lend you 250,000. You’ll need to go back to the seller and renegotiate the price, go to a different mortgage lender, or get the rest of the money from somewhere else.
A mortgage lender’s valuation will also ensure that it is in the lender’s best interest to give you a mortgage on that property. There are certain properties on which lenders are less likely to approve a mortgage, such as those in a state of structural disintegration, or sometimes properties that are made of certain materials.
The mortgage lender’s valuation will be done by someone with experience who works for the bank, mortgage lending society or lender. You will usually pay it as part of your mortgage fees.
How much a property appraiser charges
The fees charged by a property appraiser are not fixed, but are freely stipulated by the appraiser or company. The price a property appraiser charges depends on several factors:
- Size of the properties to be appraised.
- Purpose of the appraisal report.
- Location of properties.
- Degree of difficulty required by the assessment.
- Estimated time to make the certificate.
Therefore, it will depend on these factors through a range that will oscillate between € 200 and € 2000. For example, valuing a house of about 100 square meters can cost € 250.
What is the difference between the property valuation of an expert and that of a real estate agent?
If you are looking for a property appraisal to know how to price your property to sell, you might think about requesting an appraisal from a real estate agent. These are free when a real estate agent comes to see your home in the hope that you can use their services to sell the property.
Real estate agent valuations are an option, but it’s important to remember that an expert’s property valuation will not only come from someone with professional training in considering the structure, quality, and cost of improving properties, but will also be unbiased. The property valuation suggested by a real estate agent can be inflated in the hope that you will choose them to sell your property, while an expert’s property valuation is based on the facts of the property and location without external influences.
What is the difference between the property valuation and the valuation adjusted to the law?
A right-adjusted valuation is a type of property valuation that is approved by applicable laws. Just as they follow a particular code when it comes to what’s included in homebuyer reports and building surveys, so do property valuations.
This means that you can trust that the person performing the assessment has knowledge and follows best practices and procedures in accordance with national and international property valuation Standards.
When might I need a property valuation?
While most people will want a property valuation they are buying or selling, there are many other situations where you would need a property valuation.
If you are the executor of an estate that includes property, you may need to value it. This will affect estate reporting and have an impact on inheritance tax. If you are an heir to a property, valuing it by succession allows you to make an informed decision about the sale and how you would arrange the division of the estate among several heirs.
Shared Ownership Valuations
If you have a shared property, you will own a portion and pay rent for the remaining portion. Some people try to buy a little more of the property whenever they can, which increases their capital and lowers their bill.
Every time you try to increase your share of your property, you will need a property valuation on the current value. This is so that you are paying a more current market value when you buy the next portion.
If you are divorcing, you will arrange your settlement or determine how you separate your assets. Your property is likely to be the most expensive item you own, so having it valued by an impartial expert means you can reach a fair settlement based on the actual value of the property, rather than being approximated by either party.