Last Updated on May 16, 2022 by Kravelv
Are you a homeowner or are you looking to invest in a property? have you ever considered what factors can influence the true value of a property? A property will become one of the biggest assets that you will own, so it makes sense that you would like to ensure that you are utilising every possible avenue to benefit your investment in the future which in turn will maximise value.
Ever heard the term property valuation, well that is the key to all property-related queries you may have, a valuation is an essential tool to have as a homeowner or potential buyer. There are several reasons why u may need a property valuation, and depending on which service you choose a property valuer will conduct an inspection of the property and assess how much the property is worth, analysing relevant information such as market influences which will take into account any possible factors that might come into play, the valuer will then create a report with all the findings and data analysis, giving you insight into the value of the property.
It’s important to prepare for an inspection of your property or to know what valuation service you require if you are interested in potentially purchasing a property, and that’s where Perth valuers property valuation is recommended.
There are a number of influencing factors to consider that can have an impact on the value of your property. This may vary as well depending on other factors involved. As your property is likely to be one of your big assets it makes sense that you want to
When it comes to property valuations there are certain elements that you are unable to change when it comes to your property, such as the size of your house, land, and the location where the property is situated. Although it can still be possible to make certain changes that may benefit your chances that can boost your property valuation.
We have detailed a few key factors that can impact a property valuation
- Market Conditions
- Condition of the Property
As the saying goes, Location, Location, Location, the most important factor in determining how much a property will be worth. The valuer as well as yourself need to take into consideration what type of properties are currently selling in the area which will give you an idea of what the property should sell for.
Factors that are noted in the valuation will be proximity to shops, schools, public transportation, as well as other neighbouring amenities. You can also ask yourself, Is the area within a tourist destination spot? Or is it close to the city centre?
For many the more accessible and popular the location of the property the more valuable the property could be estimated at. Condition will also play a significant role in the value, if it has been updated or not, and if these updates were done recently.
Size and Space
For real estate properties the determination of the market value is calculated by the price per square foot. In other words, the amount is calculated by the total sales price divided by the property’s square footage. Usable space can also determine a property’s value. Anything like garages, unfinished basements, and attics are not included in the square footage. Bathrooms and bedrooms which are frequently used can increase the value significantly. You can also factor in the land that is being occupied which is linked to the size.
Buyers are willing to pay more, when a property is new, as there are fewer renovations or upgrades required or that need to be considered. Other than the age, the condition of the structure is an important element to consider. As older properties may have stronger “bones” structurally they are not as appealing to the eye to grab potential buyers as a new property would be. Take into account that newer properties are built in shorter timeframes and may have more structural defects that would have to be repaired down th track.
Updating your property whether you are selling or buying a property can have a positive outcome. With older properties many features throughout may be outdated and this can decrease the value when trying to sell. The kitchen and bathrooms are one of the main areas potential buyers look for in a property. Any small improvements made can help with bringing in more potential buyers as you are giving them an insight into the property’s potential.
“Curb Appeal” another upgrade that not many would consider this will be the first impression for potential buyers and is another major factor that affects the value of a property.
In the real estate industry, there are many factors that impact the value of a property. These include interest rates, location, market conditions, and one major factor could be the supply and demand effect.
Property prices will rise as more people will attempt to buy. This is what we call a high demand but a fixed supply. When the supply can surpass the demand, prices will start to decrease in the market giving buyers more opportunity to secure their dream home.
It’s important to know what a property is worth before buying or selling. A valuation will investigate internal and external variables which reflect the property’s true value. Having the knowledge of the property’s selling points and an understanding of the local property market can assist in making the right property decision for your financial situation. Seeking the right advice from our team of property valuers will help you make a well-informed property decision.
John Carter is a skilled and experienced senior property valuer working within the Perth CBD and greater Western Australia. With a niched expertise in multi-use commercial properties, gained over his two decades as a property valuer. John is considered one of the leading experts in Perth within property valuations and has passed his specialised knowledge on through industry training programs. His attention to detail and passion for property market research has inspired the next generation of valuers at Perth Property Valuers.