What is a property valuation?
A property valuation is an assessment, that is carried out, in order to determine the estimated value of the property at that time. Agents will conduct the survey, and compare similar properties in the area to come up with a reasonable figure.
Why are they important?
Valuations are essential for understanding the value of your property. This can later aid in the selling of your property, remortgaging and taking out insurance. Without a valuation these tasks are impossible. The most important reason for a valuation is the selling of a property. Many factors are considered during the valuation.
What factors are included?
- Location – A property situated in a prime location, such as easily accessible to schools, supermarkets, and public transport is considered desirable.
- Age – The year of construction is considered when evaluating a property. For example, older properties may have high maintenance costs, which will be reflected in the final valuation.
- Condition – The condition of a property is arguably the most significant factor. If a building is in good condition, it will be worth more money.
- Size – Buyers want valuations to be accurate in terms of the size of a property. Therefore this aspect will be carefully considered by surveyors.
- Useable space – A valuation will include the assessment of the usability of the space. If basements or lofts have been converted into functional rooms, valuation will likely be higher, than properties that have not utilised these areas.
- Extension potential – Many buyers look for the potential to extend their property in the future. If surveyors recognise this quality in your property, it will contribute positively to your valuation.
- Neighbourhood and neighbours – A welcoming and friendly neighbourhood will only add value to your property.
- Economic factors – The current state of the property market and changing trends in house prices will also affect the valuation of your property. This factor is completely out of the buyer’s control.
- And a properties energy efficiency – Energy efficiency is a growing desire for buyers when it comes to finding the right property. The insulation, use of renewable power sources, and use of LED fixtures, double glazing, and efficient household appliances will also be considered.