If you have decided to invest in property, valuation is an essential step, and you must get it right to get the right investment property. In this article, we are going to discuss some aspects of property valuations you should be aware of.
It Is Not Exact Science
Human beings do valuations so the end value will be subjective. People are only human, and they can mess up here and there. Property valuers Sydney are expected by the law to give the correct figures because if, for instance, they give the property at a price that is too high, the bank will lose money. It is good to be conscious and conservative with the estimates you are given.
It Is Not Real Estate Valuation
You cannot trust the real estate agent fully to value your property. Many times, they will give a figure that allows them to sell the property faster than their competitors. More to that, they are aware that the property owners and the investors want to get a good deal. Do not get me wrong here, some real estate agents are professional, but they will alter the estimates to meet expectations. It is best to get your estimates from independent valuers with no interest in the property.
Valuations Are Not Equal
When you think of valuations, you might think that there is a process followed by all valuers, but this is not the case. However, as an investor, you must be aware of the right way to carry out valuations so that the outcome is not influenced. If you talk of full valuations, it involves external and internal inspection of the property as well as comparing sales of the similar property in the market. Restricted valuation, on the other hand, involves external valuation and market research.
Comparable Sales Play an Important Role
As pointed out earlier, the comparable sale is an essential aspect of the valuation process. It involves comparing your property with similar properties regarding size and type. It can be challenging to carry out the comparison in the remote areas or cities with unique buildings.
You Can Be Part of the Process
Very few investors understand that they can be part of the valuation process. So if you are reading this for the first time, let it be clear that it is okay to help in the valuation process. Avail yourself to answer any questions they might have regarding your property. You should not act like you want to influence the outcome, but it is okay to be involved and give any information they might want.