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A valuation report is a professional and legal assessment of the value of your property prepared for many different purposes. #Mortgage #Valuation #homebuyer #homeloan
Here are the most common reasons:
Read more on different values for the same home and other posts on LinkedIn.
Have you ever wondered why a home can be listed for one price, valued at another, lender-valued at yet another price and then sold for a figure that leaves everyone scratching their heads?
This scenario is like the tale of the 6 blind men and the elephant. Each touched a part of the elephant and decides the whole big picture without any input from the others.
If your home is mortgaged, your lender will definitely value it. This gives the lender confidence your asset offers ample security against the borrowed amount if, for some reason, you cannot pay your mortgage and the lender must sell the property to recoup its debt.
It is therefore unsurprising that a bank valuation will usually be conservative, sometimes 10%-20% less than the current selling prices of comparable homes.
Real estate agents are commonly asked to assess the market value of your property. This will often help a vendor decide who to engage to sell their home.
An agent will inspect the home and research comparable sales in the local suburb or town before producing written feedback with a sale price estimation such as “between $X and $X” or “from $X”. This price guide is used when advertising the house.
The price the successful buyer is prepared to pay, and the vendor is willing to accept, on the day the contract is signed is the property’s legally binding sale price.
Hot markets, high demand in certain areas and a big turnout on auction day can all have an effect on the final sale price for a property.
The annual local municipal rates bill shows the notice a Capital Improved Value (CIV), site value, net annual value (NAV) and/or gross rental value (GRV).
These figures are calculated using varied methodology including comparable sales data and the bi-annual figures from the State Valuer-General’s offices.
Councils, and water and fire authorities, use these figures to work out how much homeowners owe them for using their infrastructure and services.
Every property owner will have a ‘dream price’ in their minds when they come to sell. It includes the memories, convenience factor and any add-ons made to the property.
In the end the market will usually decide a property’s value by what a buyer is willing to pay for it at auction or through private sale. What are your views? Are you looking for a valuation on your property? We can help you. Contact us today.
Property valuation.
"A valuer assesses the value of land, buildings, improvements and other factors that influence the current or past value of your property, a process that usually involves an external and internal inspection of the property. Valuers are independent with no vested interest in the properties they value."
There are risk ratings that a valuer must assess and classify from low to high risk (rating 1-5).
The risk ratings are based on the following 8 factors:
What goes into a valuation report
The valuer will visit the property, measure it and note details on the building structure and its condition.
The following features are noted
The purpose of a valuation report
A valuation report is a professional and legal assessment of the value of your property prepared for many different purposes:
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