A property’s value is dependent on several different internal and external factors. Understanding how a home is valued can help you make sure your property maintains its worth.
The significance of knowing the fair market price of your property should not be underestimated, as an accurate valuation report can lead to improved decision-making and informed planning.
The most reliable way of finding out a property’s value is by getting an independent valuation report. Home valuations in Western Australia are performed by registered professionals who have been trained to accurately assess all sorts of properties. Valuers know exactly what boosts and what reduces the appeal of a property.
Professional valuers follow international valuation standards and prepare every report in line with legislative and regulatory requirements. As such, the reports are seen as certified documents and are legally accepted as conclusive evidence of the property’s value.
Getting to know the process and factors that go into a valuation service can help owners properly prepare for the inspection.
What affects the value of real property in a valuation?
Residential valuers need to have a thorough understanding of what factors raise a property value on a valuation and what hurts a home valuation.
By careful consideration of every contributing factor, valuers can determine a monetary worth that accurately represents the property. A few of the different factors that impact a property’s value are:
Location
As you might’ve heard, a property’s location is arguably the most important factor when it comes to determining its worth. A desirable area instantly boosts the value of a property as people are attracted to the surroundings. Even the nicest of properties will have their value significantly reduced in an undesirable location.
Proximity to facilities like public transport, hospitals, schools, entertainment, public roads, and beaches will directly affect how attractive a location is.
Size
A larger property is likely to be worth more than a smaller one. The number of bedrooms and bathrooms directly affects value as bigger properties are attractive to families and young couples. The amount of floor and storage space is also a key consideration when it comes to value.
A well-designed house that maximises the available space and creates a comfortable living environment will be worth far more than homes that feel compact and cramped.
Features and renovations
Notable renovations can occasionally increase the value of a home. The most tried and tested way to add to a property’s worth is to make renovations to the kitchen and bathroom.
Adding renovations can often be expensive, but it may payoff in the long run when it comes to your home’s worth.
Street appeal
The first glimpse of your home that prospective buyers or investors get is the outside. If the front of your home isn’t properly looked after, no one is going to be interested. The street appeal of a home is thus vital when it comes to a property’s worth.
By taking care of your front lawn, maintaining the driveway, and keeping the area clean, you can ensure the value of your home isn’t negatively impacted.
Garden and yard area
Does yard affect valuation? A well-maintained garden and yard area will directly impact the value of the property. The outside section of your home plays an important part in its final worth.
A large and looked-after yard will thus significantly boost the value of your property.
Building condition and age
The state of the building will naturally have a big influence on the property’s value. The importance of good maintenance should never be understated.
A building that has a modern feel and shows no sign of deterioration or age will be worth more than one with damaged walls and weak materials.
Market conditions
A key factor when it comes to the value of a property is the existing market conditions. Valuers stay up to date with market trends to ensure valuation reports are prepared accordingly.
The housing market is subject to constant change. As valuers have specialised and professional insight, reports are consistently accurate and in line with international standards.
Interest rates
The housing market is directly impacted by the interest rates applicable to loans. When rates are low, the demand for housing increases. When rates are high, fewer people are buying properties.
As such, the interest rates will influence the prices of homes in accordance with supply and demand.
Conclusion
There are multiple different considerations when it comes to the value of a property. Understanding what goes into a home assessment can help owners maintain their property’s worth.
An independent property valuation from a registered professional is a legally-accepted method of finding out the value of a home. Expert valuers are trained to consider many internal and external factors when preparing valuation reports.
By carefully analysing each contributing factor, valuers can assign properties with accurate monetary values. The location, size, street appeal, state of the building, garden area, interest rates and market conditions all have a direct impact on a property’s market price.
Valuers are extensively trained on what will badly affect a property valuation and what makes a valuation higher. With years of experience and the necessary qualifications, valuers can reach precise final figures.
For more information on what factors affect a home valuation, feel free to speak to one of our highly qualified experts today.