property Valuation Service

8 Common Pitfalls to Avoid When Asking for A Property Valuation Service5 min read

Many people want to know how much their property is worth and will often ask a Sydney property valuer for the value. A property valuation is a process whereby a professional valuation service estimates the worth of a particular piece of real estate.

8 Common Pitfalls to Avoid When Asking for A Property Valuation Service

There are many reasons why someone might need to commission such a report, but some of the most common ones are wanting to know how much their property is worth selling, getting a loan or mortgage, and needing to settle an estate.

Read More: Building Valuation | Building Valuation Methods | Valuation of Land and Building


Property Valuation Services: 8 Things To Avoid

Unfortunately, many pitfalls can come up when asking for a valuation service, so we have compiled a list of 8 common ones to help you avoid them.

1) Not knowing what type of valuation, they need

This is important because there are different types of valuations based on the reason for the inquiry.

For example, if someone needs an insurance quote, then they would be better off speaking with an insurance company rather than a land or building valuer.

2) Ignoring your mortgage balance

The lender may not provide it; in some cases, you might not even know your current balance – but ignoring it will result in an inaccurate valuation.

If you want to know how much your property is worth, including the mortgage balance is essential – otherwise, it’s like driving a car without knowing how much petrol is left in its tank!

3) Not knowing what they can afford

This is an important part of the process because you could ask for a valuation, which might be lower than your budget.

A valuer will not know your financial situation, so make sure that this aspect is clear before commissioning them to complete work on your property.


4) Not knowing the valuation’s purpose

If you just want an estimate, then a desktop appraisal will suffice; however, if you need to make an accurate decision on whether or not to buy a property based on its value.

For example, as part of your business strategy – this aspect must be communicated from the outset.

5) Not knowing the difference between land and building valuation

The two are very different, with each having its own purpose.

A) A Land Valuation – which is also known as an unimproved value – will give you an estimate of what your property could sell for in its current state without any buildings or other improvements on it. For example, if someone were to buy the land only, they would have to build from scratch rather than buy a readymade home that’s already been constructed.

B) Building valuations come into play when estimating how much a finished structure may be worth if sold today based on its condition at this point in time. This is because it takes account of both structural damage and depreciation due to age and normal wear & tear.

Knowing the difference between the two is important to ask for the right type of valuation and not be disappointed with the results.

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6) Not knowing what they want

This includes specifying a timeframe, budget, and location – among other things.  If you’re not sure, speak to a valuer, and they can help guide you in the right direction.

It’s important to have realistic expectations regarding property values, so make sure that what you want is clear before getting started.

For example, if you only want an estimate for a certain area, then specifying this will save time and money. On the other hand, if you need a more detailed report, be prepared to pay for it.

The timeframe is also important – most valuations are completed within two weeks, but this can vary depending on the type of valuation required and how busy the valuer is at the time.

7) Asking for something that’s impossible

Valuers are professionals who have been trained in their craft; they’re not miracle workers! So if you’re asking them to value a property that doesn’t exist or is out of their area of expertise, don’t be surprised if you don’t receive a response or if it’s way off from the actual value.

8) Assuming all valuations are created equal

Just as with any other service, you get what you pay for. A cheap valuation might be just that – cheap! It may not be as thorough or accurate as a more expensive one, so make sure to read the small print before signing anything.

On the other hand, if money is no object, then splash out on a luxury resort that will include all the bells and whistles.

Think about your needs and budget before getting started, and this will help narrow down your options.

Read More: Check These 14 Legal Documents Before Buying A Property


Final Words

Remembering these pitfalls can save both time and money! Search online for Sydney valuers who have experience in their particular field of expertise, and be sure to let them know how they can help.

We hope these tips have been helpful and wish you all the best for selling or buying your next home.

Author Bio

Samantha Grant is a specialist in her field and has been working within the property valuation industry for over 20 years. As a Senior Valuer, Samantha is an authority in all forms of residential, commercial, and industrial valuations and has served as an expert witness in high-profile litigation proceedings. Samantha’s professional knowledge is often utilized in industry conferences, seminars as well as performing guest lectures as an industry expert.

FAQs:


Which types of service are avoided in Property Valuation?

1) Not knowing what type of valuation, they need
2) Ignoring your mortgage balance
3) Not knowing what they can afford
4) Not knowing the valuation’s purpose
5) Not knowing the difference between land and building valuation
6) Not knowing what they want
7) Asking for something that’s impossible
8) Assuming all valuations are created equal

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