What is Property Valuation?
A property valuation assesses the estimated property value of real estate. It’s typically conducted by qualified appraisers or real estate agents, who will take into account the location, size, and condition of a property before making their decision.
Property values will be determined based on the current state of the property market and the available market data.
The resulting valuation report is used for a variety of purposes, including when selling the property, obtaining a mortgage, estate planning, or tax assessments.
How long does it take to do a valuation report?
A standard residential property valuation can take anywhere from a few hours to an entire day, depending on the size of the property.
The availability of property data and access to the home can also impact the timeline. If the valuer needs to gather additional information or access to the property is restricted, it may delay the process further, and it will take longer to get an accurate estimated property value.
It’s best to consult with a property sales information provider to get an accurate estimate of how long your valuation will take.
How long does it take to hear back from a house valuation?
The time it takes to receive the estimated value of a property varies depending on who is carrying out the property search.
If the valuation is conducted by a professional appraiser, they will typically provide a written valuation report within a few days to a week after visiting the property.
If the valuation is conducted by a real estate agent, they may verbally agree on an estimated value of the property value while carrying out the inspection and will supply a more detailed report within a few days.
In some cases, if the valuation is required for mortgage or financing purposes, the lender may also require additional reviews or approvals, which can delay receiving the estimated value.
What do they look at when valuing a house?
Appraisers and agents use property details, professional expertise, and available market data to determine the fair market value of a property.
Here are the property details typically under consideration:
1. The location of a home is one of the most critical factors in determining property values. This includes the neighbourhood, proximity to amenities such as schools, shops, and transportation, and the desirability of the area. Market data is used to determine the average sale price of similar properties in the area.
2. The size of the property, including the number of bedrooms and bathrooms, the layout, and the property’s condition, also impact its value.
3. Comparable sales: Appraisers and agents look at recent sales of comparable properties in the same area to determine the property’s market value. This is known as the comparative market analysis (CMA).
4. The age of the property and its condition also impact its value. Older properties often require more maintenance, while newer properties typically have modern features and amenities.
5. Any improvements or upgrades made to the property, such as renovations, landscaping, and extensions, will increase its value.
6. Economic conditions, including interest rates, inflation, and the state of the local real estate market, can also impact the value of the property.