Let’s say you want to sell a house and have been looking for estate agents in Faversham. Upon research and consultation with some estate agencies, they suggest you sign up for a free property valuation. But you being new to the real estate industry end up baffled.
You end up asking yourself- What is house valuation? And what can I expect from one? In today’s blog, we will discuss everything you need to know when it comes to property valuation.
What is meant by property valuation, and what can one expect from it?
The process of being provided with an estimated worth of any property during the time of evaluation or inspection is known as property valuation. Interestingly, property valuation is beneficial to both the parties- buyers and sellers since it goes both ways. Let’s take an example: suppose you have a property that you want to sell. If you get the valuation of the property, it will provide you with a clear idea of what should be your asking price for your house even before you put it out on the market. Similarly, if you are a buyer, opting for homes that have undergone the process of property valuation will ensure that you are paying a fair price for the house you are going to buy.
By conducting a house valuation, you will have an estimate of the budget required to purchase a new property. When filing for a mortgage, lenders will also ask for a valuation to be carried out before they approve your loan and the final amount is sanctioned.
There are various factors that can influence the valuation of a property namely its size, location and the condition in which the house is at present. Hence, it is crucial to carry out a house valuation only by experienced and professional estate agents or by independent valuators. If possible, get several separate valuations for your property done in order to gain accuracy.
What happens when a house valuation is carried out?
One important thing to remember when understanding the process of house valuation- not all estate agents or valuators have the same method of conducting a property valuation. But some key factors do not change no matter who conducts the valuation. During the process of house valuation, the valuator behaves like a prospective buyer- the property is evaluated from the perspective of a prospective buyer and analysed on some standard factors such as topography, location, and the total size of the plot of land. Any chances of future development and zoning are also taken into consideration.
During the evaluation process, the evaluator or estate agent will also provide you with data on recent sales and recent property rates so that you have a guide to fall back on and you would know what to expect from the valuation process.
Internal and external evaluation will be carried out, much like a viewing of any property while buying it. The size of the building will be measured, along with the number and kinds of rooms, various fixtures and fittings in the rooms, and the age of the property. The structural integrity of the property and its present condition will also be taken into account. Insect infestations, rising dampness, moulds, dry rot, etc. can negatively affect the price of the property and enable buyers to lower the price of the property. It should be kept in mind that a property valuation appointment is time consuming and the professional will take his or her time to thoroughly evaluate the property. So make sure you free up your calendar for the process to get over smoothly. You also need time to ask questions that you may have during the valuation process being carried out.
How to increase the value of any property?
If you are planning to sell your property, you would want to get the best price from it. But is it possible to increase the value of any property? In short, it depends on a number of factors. Generally, small renovation projects such as fixing any leaky taps, removing any scuff marks, fixing broken tiles, and fixing bigger issues such as leaky roofs and cracks in the structure will lead to a hike in the price of the property. In many cases, a do-over of a bathroom and/or kitchen counts as a big renovation project and helps you hike up the price of the property.
Property valuation is an important step that must be carried out before buying or selling any property as it will benefit both parties.