Whether you are purchasing or selling a property, there are a number of influencing factors that can have an impact on the value which needs to be considered. As a property is likely one of your biggest assets you own, it makes sense that you want to ensure you are utilising every avenue to increase the potential of your property.

You might have an idea about how much you think your property is worth but there are several factors that determine the true value. A property valuation is an essential tool that many homeowners use to determine the true current value of their property amongst other property-related purposes. With a valuation you are getting an insight into the worth of the property, whether you are looking to sell, refinances or you are interested in purchasing and would like a realistic market value determined.

When you decide on a property valuation you will be assigned a property valuer that will conduct an inspection of the property and produce a comprehensive report that will detail the relevant information of the current state of the property, data analysis, and the local market position that may factor in on the value of the property. Therefore, it is important to do everything you can to prepare for the inspection or to understand what type of valuation service you require based on your situation and the outcome you wish to receive.

A property valuation hinges on elements that you are unable to change, such as the size of your house, land, and the location. It is still possible to make certain changes to the property which in turn will boost the results of your property valuation.

Key Factors that impact a property valuation:

• * Location

• * Market Conditions

• * Overall condition of the property

The most important factor in determining how much a property will be worth is the location. It's important to consider the type of properties in the area that are currently selling, and how long they have been on the market.

Another consideration for a valuation is the proximity of the house to shops, schools, and public transport as well as neighbourhood amenities, the more accessible and popular the location is the more valuable the house can be estimated at. The condition of the property plays a significant role in the value, whether it has been updated or not and if the updates were done recently.

Property Aspects

The size and space of the property, in other words the price per square foot helps determine the market value for real estate purposes. This is usually calculated using the total sale price divided by the property’s square footage. Usable space is another option.

When it comes to the garage, basements, or attics these are not included in the square footage of the property. Accommodation, like bathrooms, bedrooms, areas that are frequently used as living spaces can increase the value significantly. With the property size, and the land on which it is occupied can also be factored into the valuation of the true value.

The age of the property, we all know the newer the property the more potential buyers are willing to pay, as there are fewer renovations or upgrades you need to consider. Besides the age, the condition of the structure (the shell) is important. Older properties may not be as appealing to the eye, but they may have stronger “bones” compared to newer properties that are built in a short time frame and may have more structural defects that would need to be repaired down the road.

Whether you are selling or buying a property, it's important that you keep the property up to date as this will benefit you in the future for a better outcome for the value. With older properties especially, they might have features throughout that have the potential of decreasing the property value. Depending on your budget, if you wish to do a couple upgrades, any small improvements like a fresh coat of paint, new tapware, cabinetry, and maybe even new flooring will give the property a new lease on life and will give potential buyers an insight into the potential this property may have for them.

Another improvement many buyers seem to forget is the curb/exterior appeal of the property, if you think about it this will be the first impression any person will have on your property, and this is a major factor that can affect not only the value of the property but the number of buyers that are willing to even enter the property if the curb appeal is not up to standards. First impressions count and what they see from the outside will add to the expectation of the inside.

There are many factors that can impact the value in the real estate industry. This includes interest rates, location, market conditions and one key factor is the supply and demand effect. In saying this a high demand but a fixed supply will see an increase in property prices as there are more buyers interested. Knowing what your property is worth before buying or selling is important to help you stand out from the rest and know that you are not losing out on money.

As we mentioned prior, a property valuation is an essential tool to any homeowner or buyer to give them a clear understanding of the true market value of the property as well as the market conditions that come into play. The valuation procedure is an extensive process to investigate internal and external variables which will reflect on the value. The knowledge, expertise and data analysis required for these valuations is conducted by qualified trained senior valuers that specialise in the real estate property industry. You are guaranteed a comprehensive report that will give you a clear finding of your property related purpose and help with your final decision in what you wish to achieve with your property to best benefit your financial position in the future.

Author Bio

John Anderson - LinkedIn Profile

John Anderson is one of Melbourne’s leading experts in commercial and residential property valuation services. John is a registered Chartered Surveyor and Senior Property Valuer with over 20 years of professional experience providing property valuations across Melbourne and Victoria. His in-depth expertise in real estate and property has allowed him to share his specialised knowledge as an authority keynote speaker at conferences and universities across Melbourne.