Understanding valuations

Understanding Your Property's Value: The Importance of Valuations

Getting a property valuation can be a valuable tool for homeowners, helping you track changes in your property's value since purchase. But did you know there are various types of valuations, each serving a specific purpose?

• Automated price estimates: Quick online tools providing an estimated market price, ideal for initial selling considerations.

• Appraisals and privately ordered valuations: Free or paid services offered by real estate agents or Certified Practicing Valuers, providing a more detailed assessment.

• Bank valuations: Specifically used for mortgage applications to determine the "Loan To Valuation Ratio" and lending amounts.

When conducting a valuation, experts consider various factors, including:

• Property size and layout

• Room count and type

• Fixtures, fittings, and condition

• Improvement opportunities

• Location and accessibility

• Building structure and faults

• Presentation and fit-out

• Local sales data and market conditions

By understanding the different types of valuations and their purposes, you'll be better equipped to make informed decisions about your property. Remember, bank valuations are solely for mortgage purposes, so don't rely on them for other needs.