Property valuation, in simple terms, is the process of estimating the worth of a property. It is carried out by professionals known as valuers, and they use various methods to come up with an accurate valuation.
The purpose of carrying out a property valuation may differ for different people. For instance, buyers may want to know the worth of a property before making an offer, while sellers may want to know how much their property is worth to set the right price.
In some cases, a government may order a property valuation to assess how much tax should be levied on it.
Valuers take several factors into account when carrying out a property valuation.
- Location
Location is one of the most critical factors affecting property valuation. The location of a property determines its desirability, which naturally affects its worth. For instance, properties within walking distance to transportation systems are usually considered more valuable than those not easily accessible by pedestrians. Similarly, properties in busy areas with high human traffic are usually more expensive than those in quieter neighborhoods.
- Age of the Property
The age of a property can also affect its valuation. Properties that are newer and in better condition tend to be worth more than those older and need repairs.
- Size of the Property
The size of a property is another essential factor that affects its valuation. Generally speaking, the larger the property, the more expensive it is. Hence the question does furniture affect property valuation? For an accurate answer, click here.
- Amenities and Facilities
Properties that come with unique amenities and facilities, such as a swimming pool or tennis court, tend to be worth more than those that do not.
- Type of Property
The type of property also affects its valuation. For instance, a two-storey house is usually worth more than a bungalow, even if they are built on the same plot of land.
- Quality of Property
This factor refers to how well-maintained or well-designed the property is compared with other properties in the same area.
- The Status of the Property
The status of a property can also affect its valuation. For instance, a property in a conservation area will be worth more than one that is not.
- Recent Sales of Similar Properties
When valuing a property, professionals often look at how much similar properties in the area have sold in the last 2-3 years.
- Assessed Value of the Property
According to tax authorities, it refers to how much your property is worthÂ
Property valuations are carried out by professionals who are legally recognized as qualified valuers. The government may require you to carry out a property valuation if your property is taxable or if you wish to obtain an official permit for particular renovations.
You can consider hiring the services of an experienced valuer who will help you establish the fair market value of your property or ask friends for recommendations for qualified real estate agents that they have worked within the past.