Buying and selling a home is a big decision, and as tenants and property owners begin this journey, one of the first questions they are faced with is, “how much is my house worth?” The easiest, most practical way of finding out your house’s worth is by the process of house valuation. 

House valuation is an assessment of the value of your property based on factors such as location, infrastructure condition, and the cost of comparable properties in the area, among others. Because of the changing nature of market value and other factors that affect negotiations between buyers and sellers, the sale price usually differs from the estimate mentioned in valuation reports. Regardless, having your house valued will provide you with all the valuable information about your home and the market that will allow you to negotiate effectively and get the best deal as a buyer or seller. 

Complete Guide to House Valuations

House valuation is essential for both buyers and sellers. Read on to learn about the processes involved in house valuations, including cost and time, as well as its benefits. 

Who conducts House Valuations?

House valuations are typically performed by a ‘surveyor’ or ‘valuer,’ a trained professional with a state-issued licence. They will assess the number of rooms, property size, carpet area, wear and tear, architecture and style, and location to provide you with an estimate. They will also document everything on paper so you can deal with banks, insurance agents, lawyers, and investors. 

How long does a valuation take?

The duration depends on the property size— the bigger the property, the longer it will take. Still, more extensive properties might take between 1-2 hours, while smaller properties will take around 30 minutes. The report will take more days. Furthermore, the property’s potential for renovation, such as space for an extension or the creation of loft space, would add to its value. 

How much does a property valuation cost?

Pricing may vary depending on location, property size, and other things. The cost is affordable compared to what you get from a property’s established market value. Furthermore, various valuation agencies make online valuations possible. They may require lesser fees as it doesn’t involve the cost of travelling to a location to assess the property.

What Affects House Valuations?

The property’s age, size, number of rooms, lawn, parking areas, presence or absence of a garage, overall design, and appearance(architecture and interior design) are all critical factors in determining its value.

What are the benefits of Home Valuation?

Secure from scams

For buyers, Property Valuation helps in estimating the actual worth of their house and judging whether the sale price mentioned by the seller is appropriate or not. It saves them from unnecessarily paying exorbitant rates and also from falling into scams or malpractices of the builders.  

Helps in availing Insurance and Loans 

Furthermore, if you are a house owner, house valuation offers other benefits like availing of loans and insurance. This is because appropriate house valuation reports increase credibility making loan approvals easier. In case of emergencies or damage to property, accurate Property Valuation ensures that the insurance coverage cost is reasonable, therefore saving the owner from the risk of low insurance coverage. 

Aids in Taxation Process 

Knowledge of property value is required to file taxes accurately. This is because tax is calculated and paid to the relevant authority based on the approximate worth of the property. If you file taxes inaccurately, it could lead to legal consequences. Therefore, you must calculate the value of your property precisely. 

How to increase the value of your house? 

Installation of environment-friendly designs like solar panels, rainwater harvesting and food waste gardens may increase the value of a house in the market. Some of the easier ways include applying a fresh coat of paint, decluttering the space, and improving the way your main door, verandah, porch and curb look, as those are the first aspects you see from across the street. 

Conclusion 

House valuation is the process of assessing a property’s value. Evaluating a property is easy and doesn’t require much time. Furthermore, house valuations have various benefits, including ease in registering for loans and insurance, ensuring security from scammers, and aiding in taxation.