Ascertaining a property’s worth is a tricky task when you’re looking to buy. It’s not an exact science, but you can do a lot to make an assessment as closely as possible to the value of the property.
Here are the Top 10 things to remember when valuing a property:
The first and most important element of valuing a property. Get to know as much as you can about the property you’re looking at buying. Find out all there is to know about the suburb and the street. What do the neighbours think of the area? What is the traffic like? Are there any major developments planned in the area? Are there any amenities like schools currently in the area, or being planned?
Get a good look at the property at the open for inspections. Get in early and leave late to see as much as you can. What’s the floor plan like? Is there good natural light? What will the light look like throughout the day? What condition are the finishes in? Are there leaky taps? Take in careful consideration of all of these elements and keep a record.
3. Disregard Emotions.
A professional valuer will look at property without emotion. Their assessment will be evidence based and not influenced by feelings. As should you. Your purpose for buying the property will influence how you view the property, but emotion should not. If you are purchasing an investment property, you should always keep in mind how it will fulfill your investment goals. Will this house satisfy potential tenants? Who will those tenants be? You will have different considerations if you are an owner occupier. Think seriously if you will be happy to live in this house.
Look into as many recent sales in the area that you can find to gain an understanding of where the market is at. Compare the differences between properties. How much more would you estimate an extra bathroom would gain? A larger backyard? Or a good floor plan? Also think about what you would be prepared to pay. Compare apples with apples.
5. Don’t listen to listings.
This ties in to the above point. An agent can quote whatever they like for a property. It may be well over, it may be well under. Until the hammer falls and papers are signed, no one knows what a property is worth. Comparing recent sales prices will give you a much better idea as to what the market is happy to pay.
6. Location, location, location.
Think about this across every aspect of the property. What is the orientation of the property on the block? Where is the property positioned on the street? Also check proximity to amenities such as schools, public transport, and shopping.
7. Break it down.
Your assessment can be made a lot easier by breaking down the elements of the house, the land, and the ancillaries and then assessing how well they combine. Understanding what each element will provide in terms of lifestyle and well they marry together can tell you a lot about the property.
Does the house need renovations? How much would they cost? Just as importantly, has the property already had renovations? To what level of quality have they been completed?
9. The locals.
Talk to the neighbours. They live in the area already and can often provide the best insight into the neighbourhood and what it’s like to live there.
10. Get expert advice.
A Buyer’s Agent can always help you with all of the above. If you already have completed your own assessment, an independent Buyer’s Agent can confirm your assessment and even help you secure the property.