What Determines The Valuation Of A Property?

What Determines The Valuation Of A Property?

Real estate businesses have become a global subject for investments and high return on investment as well. In order to strengthen one’s finances and form a solid foundation for the future, it is important to invest in long-term and efficient ways of investing. Even though the current hype about cryptocurrency is quite considerable, it is not a sustainable model of investment for several reasons. One of the reliable and well-known ways is through real estate.聽

In this article, we have summarized the crucial factors that are usually considered during property valuation. However, certain criteria should be matched during a property valuation process for the lenders to invest in a particular property. So, if you are wondering about going for a valuation, have a look at the below-mentioned criteria.

Dimensions of the property聽

The greater the amount of floor space in a property, the better. Different financers will have different minimum property sizes for which they will spend money. If you have renovated and furnished your property to increase the overall floor space, it may definitely help to increase its value.

Presentation and design

When it comes to property valuation, a well-maintained property can make all the difference and this is one of the fundamental truths about real estate valuation. You should be so prepared for a valuation in the manner you would for a house of your own to a few valuers. As a result, it is critical to clean up the lawn and gardens, and de-clutter around the house if required.

Parking

Parking is critical in a congested urban area. If you have a property in a metropolitan city that too in one of the hotspots with a parking spot, it will immediately increase in value. On the other hand, if you live in an area where most houses have parking facilities except you, the valuation will naturally suffer. If you are interested in finding out more about property valuers, you should visit the Sydney Property Valuers Metro of Sydney.

Extent of renovations

It is a thumb rule for any real-estate valuation process that if you begin a project, it is critical that you complete it before the valuer sets their foot in your property. In case you are partially done through the remodelling or renovation during their visit, it will definitely have a negative consequence on the value of the property and its overall reputation.聽

You should always remember that a valuer evaluates the property based on how it appears on the day of evaluation, and not what it will look like after all sorts of renovations are completed.

Evidence of recent sales in your community

Apart from the above-mentioned criteria, the relative sale prices in your community form a strong criterion and the foundation of the value of your property’s valuation. A high amount of recent sales denotes high standards of the society and neighbourhood, therefore, the property is under evaluation. Therefore, try to arrange for a valuation process when you have significant evidence of a few recent sales in your community or neighbourhood and are also similar to the property that is going to be evaluated.

Concluding remarks

That was about the major criteria that you should remember if you are going for a valuation process. It is not a difficult process to undergo if you tick all these boxes. Besides, a sense of practicality and professionalism is also recommended for a smooth negotiation with the lenders or finances.