What is a Property Valuation?
There are a wide array of benefits to getting a property valuation in Melbourne. Independent and registered full-service firms provide valuation reports for all types of properties including residential, commercial, rural, and industrial buildings. A valuation report can only be performed by professionals with the relevant board certification, education, and practical experience.
A premium valuation service will consider numerous factors and apply a combination of reputable methodologies to reach a definitive numerical value of the subject property. The valuation report will serve as a certified document that can be used in legal and formal proceedings.
As a valuation is an official assessment of your property’s worth, individuals may be wondering what factors contribute towards the value of a home.
What factors affect a property’s worth?
A qualified property expert will perform a thorough inspection of the subject property to calculate its worth. The valuer will consider the following when preparing the report:
Location:
The location of a property plays a vital role in its worth. Proximity to public transport, schools, the CBD, hospitals, and shopping malls will all contribute towards a property’s value. If a property is located close to places where you can maximise your free time as well as find potential for work, it will generally be worth more. The location is vital for both residential and commercial valuations.A low socio-economic area or undesirable places nearby like jails and airports may drive the price down. Furthermore, if a suburb is known for high unemployment rates and/or the potential of crime, the properties in the area are unlikely to rise in value.
A house only a few blocks away under a different postcode may have an entirely different value due to the suburb’s reputation. A safe and relatively quiet suburb will attract property investors as the worth is likely to increase in value. When thinking about what factors raise a property value on an appraisal, the location is probably the most important
Size of the Land & Property:
A spacious and large property will most likely be worth more than something compact. Valuers will look at the floor space, the size of the property, the outside area, the land measurements, and more. A bigger property is attractive to families and has renovation potential, and adding things like more garages or storage space will improve its worth. Valuers are most concerned with usable space, as therein lies the potential.
Condition of Building:
The state of the building will affect its investment potential and existing value. An old building that has deteriorated over time will not be worth as much, as any investor will have to spend a significant amount of money to upgrade and repair the building.
Modern, maintained, and presentable buildings will have respectable property values. The way a building looks has a direct impact on its value as people will not be attracted to a property that seems uncared for.
Amenities & Features:
A house with more appealing amenities and features will naturally incur a higher value. People want entertainment and relaxation options at home now more than ever. Modernised spa-like bathrooms, guest bedrooms, outside barbeque areas, swimming pools, and entertainment areas will boost the value of a house.
Presentation & Layout:
It would be naïve to underestimate the effect the presentation and layout of a house will have on a valuers report.
A well-designed house that maximises its space and maintains a modern feel is appealing to investors and buyers alike. Hiring an interior designer may help you enhance the value of your property.
Bathroom & Kitchen:
These are often seen as the two most important rooms in the house when it comes to a property’s worth.
A spacious and open-plan kitchen with a fresh feel will significantly boost the value of the subject property. As far as what hurts a home appraisal, a small kitchen and bathroom will limit the potential of the property. Residential valuers will perform a careful inspection of the kitchen and bathroom.
The Back Yard & Garden Area:
A large backyard and appealing garden area are perfect for families and thus a key factor in driving up the market value of a home.
Families want areas where their children and/or pets can play safely in the comfort of their own homes.
Interest Rates:
The housing market and home loan interest rates will affect the affordability and demand for houses, and therefore the value of a property.
When it is easier to borrow money from a certified lender, buyers and investors are more inclined to buy property.
Renovation & Investment Potential:
If a home has the potential to be renovated and upgraded, it has the potential to fetch a much higher value than when originally purchased.
Investors thus are often searching for houses they can flip or improve on to maximise their investment. They are also drawn to properties in areas undergoing gentrification or tipped to rise in value.
Energy Efficiency:
In recent times, energy efficiency has become a far more important part of everyday life for many.
As more people work from home and renewable energy resources grow in popularity, having an energy-efficient home is a hugely beneficial feature. Solar panels as well as installed energy-efficient electronics and lights will increase your property’s worth.
Summary:
A property valuation from a registered and independent valuation firm is the most accurate way to determine the true worth of a property. It is a beneficial service for all types of properties including commercial, residential, industrial, and rural. The certified report can serve as an official document in a wide variety of legal and formal proceedings.
There are numerous external and internal factors that contribute towards the value of a property. As far as what factors can raise property value on an appraisal, a property owner may implement upgrades, renovations, or maximise the space of a house to improve its worth. For more information on property valuation services in Melbourne, contact us today. Our experts are willing and ready to answer all of your questions.
