Jul 10, 2017
The seller of a property stands to gain a lot from having a property valuation or estate appraisal done before putting his/her property on the market for sale. Because of the many benefits to be had from performing a property valuation, the exercise is highly recommended. Sadly, most home owners refuse to get one done in a bid to avoid the cost of having to pay a surveyor/valuator. It’s even worse when the property owner chooses instead to go with an estimate provided by a mere real estate agent rather than certified surveyor.
The purpose of a property valuation is for a property owner to have an idea of the current market value of his/her property. By taking into consideration factors such as location of the property, size of the property, its condition, as well as other factors, a hired surveyor will be able to accurately determine the current market value of the property in question. Having this information will offer the following benefits to the property owner;
- Information from the property valuation report gives a property owner an opportunity to consider increasing the value of his/her property before putting it on sale. That is, after knowing the value of a property, the owner can then decide to renovate or remodel the property from the furnitures and upgrading the HVAC systems with the assistance of San Antonio HVAC contractors, in such a manner that it will increase the value and thus increase the likelihood of being able to sell the house at a higher price.
- Knowing the actual value of a property gives the property owner a better bargaining power while negotiating the sale price of the property with a potential buyer. That is, knowing the actual value of the property lets the owner know the least amount he/she ought to collect for their property. Home inspections recommends performing a property inspection alongside a property valuation to give the property owner the optimal bargaining power. A property inspection means all flaws and faults of the property will be revealed and can thus be rectified by the owner before sale to give him/her a more concrete bargaining position.
- The property valuation report will contain other important information such as the value of comparable neighbouring properties. This information will help a home owner properly determine if the price he/she is asking for falls within the range of the neighbourhood’s properties or if it falls short.
- A property valuation will ensure the property owner has accurate information concerning the current market value of the property in question. Because of this, the property owners is less likely to sell at a price that is lower than the market value of the house and can thus avoid making a loss on the sale.
- A property valuation ensures the property owner has all of the following useful information; suburb trends, sales history of the property, and the property’s history of transfer of title. Depending on the valuator, the owner might also be provided an aerial photograph or current map of the property.
As there are benefits, so are there dangers associated with not having a property valuation done. These dangers are also present if the property valuation is carried out by someone who isn’t qualified or who doesn’t specialise in the field. According to San Antonio home buying specialist CashTodayHomeBuyer.com some of the dangers include;
- Selling the property at a price that is far below its actual current market value due to wrong information.
- Being unable to sell the property due to a ridiculously high price tag. The high price tag can be caused by misinformation brought on by a faulty property valuation report that states the property is worth more than it actually is.
- Likelihood of being taken advantage of by an unscrupulous agent. That is, an agent using the property owner’s lack of information concerning actual value of property to make extra profit at the property owner’s expense.