The significance of independent valuations
When it comes to having a valuation done on your property, what matters most is choosing the right valuer and service. Independent valuers in Hobart are trained in every detail of property valuation and know precisely how to provide an accurate and legally compliant report. You can feel assured you’re getting an objective assessment of your property’s features within the current market conditions.
What affects the outcome of the valuation includes:
- Location
- Condition
- Size of the property
- Age of property
- Local market trends
Licensed real estate valuers are particularly skilled at conducting standardised and thorough physical assessments of a property to ensure all these factors are accounted for. The methods used are processed in compliance with the set standards of the Australian Property Institute (API). This ensures that quality is consistent with each report.
Ultimately, the outcome of your valuation depends on the certifications of the valuers and their specialised expertise.
How does the local market affect your valuation?
Property value is affected by numerous factors relating to the market. Both residential and commercial property valuers will look to ensure they’re all considered. Therefore, the local market has a major impact on the outcome of your property valuation. The market values of the property are influenced by supply and demand, location, economic conditions, and local amenities.
Understanding the local market becomes essential as a result. Demand tends to increase around major cities or high-traffic areas. This means there is usually a lack of housing near major cities and this hikes up the market values of properties in the areas near cities.
On the other hand, in places where there is a surplus of housing, demand decreases along with the amenities that come with higher-valued homes. Areas in which housing is more available are areas removed from shopping malls, from proximity to public transport and other desirable and convenient amenities.
Economic conditions are also a factor in market conditions that influence property value. Hypothetically, a well-performing economy that has plenty of job opportunities is ideal. These conditions would drive property value up. In the same breath, if interest rates go down this would also potentially increase property demand and likewise property value.
Essentially, understanding the local market is paramount to understanding how to assess property market value.
How would property age affect a valuation?
The age of an estate can significantly influence market value in many ways. Naturally, a new property would generally be considered to be more valuable for a variety of reasons.
Older properties can come with possible unanticipated repairs, whereas new properties reduce this risk. Since a new property would require less repair and less financial risk, it would be valued higher.
In addition to less risk, a newer residence comes with other advantages of great value.
They include:
- Modern features and amenities
- Likelihood of structural problems decreases
- Likelihood of internal renovation decreases (having a more modern design).
These aspects would likely make your home or business more attractive to potential buyers and renters.
A newer house might have more energy-saving features, an open floor plan or even higher ceilings some saving costs for the owner and others adding value. Therefore, a property age does not definitively decrease its value. Certain older properties can be valued higher if their structural integrity is intact and they have architectural or historical importance.
It's also possible for older properties to be located in areas near more high-traffic locations. An older place in great condition located in the city may be valued higher than a new one in the suburbs.
A reliable and experienced residential valuer will consider all of the relevant factors that will influence the outcome of the valuation.
Additional factors that affect a valuation
We’ve mentioned a few factors involved in the outcome of a valuation. Although, there are more to be accounted for which determine the market value of a property. They include the following:
- Size and facilities: This largely impacts the overall value because it accounts for the number of people a residence can house. The more people it can accommodate the more it’s worth. The nuances of the space help a valuation determine the quality of space as well.
- Potential for renovation: Buyers consider the growth potential. A larger family, growing a business or improved aesthetic appeal must be taken into account. These factors provide security by reducing the risk of potentially having to reinvest in a larger or more efficient property in future.
- Potential for Investment: Property buyers will also be seeking attributes that increase their chances of making a profit on their investment. For example, the expected rental income or future sale profit that can be made from a particular residence.
Overall, every property is different and requires exhaustive efforts on the part of independent valuers. However, they are educated and trained to assess properties in a tailored fashion.
Contact us for any information regarding our professional valuations services and a professional will be there to help you insure your investment.
