Property valuation is the process of estimating the current market value of a property, based on how much it would normally sell for with the knowledge and consent of both buyers and sellers. Property valuation is carried out by a professional agent or valuer who is a completely neutral party and has no stake whatsoever in the property. The reports generated from a property valuation exercise are generally valid for up to three months.
Interestingly, a valuer looks at the same things a prospective buyer looks at what valuing a property. The agent or valuer will assess the land and the property, basing such assessments on different scales. The factors for assessing the land include the topography, location, and size. The land’s potential for development is also taken into consideration. An internal and external inspection of the property will also be conducted. The valuer will examine the size of the building, condition, fittings, age, fixtures, layout and design. Ease of vehicle access, garages and out buildings are considered and pictures are taken of the property highlighting important features. These are all factors that could affect the result in the final valuation report.
This will depend on what the valuation is for. If you simply need an idea of the value of your house, local agents can be called in to have a look for free and without obligation. However, if you have to commission a licenced valuer to value your house, then yes you will have to pay. They have to base their report on facts as they are legally responsible for the information they provide. A chartered surveyor is needed to provide a formal valuation for revenue and capital gains, so you will have to pay him for the job. While it may seem like yet another expense, a property valuation is important for the successful sale or purchase of real estate.
Generally, documents are not required during property valuation. Besides the deeds to the house which the agent may request to look at, no documents are necessary at this stage. The look and feel of the house is what is paramount to the agent during a property valuation.
There are different methods that can be used during property valuation. Each method has its own advantages and disadvantages. As far as the UK is concerned, the method of valuation that will be used during property valuation will depend on the property in question. The property valuation process for a house to be sold will vary significantly from that of a house being built.
Arming you self with relevant questions to be asked when valuation is going on. During property valuation, the agent will want to know the initial price of the property, and the length of time you have had the house. You will also be asked about any renovations that have been carried out on the house, and if there are any potential problems which they need to be made aware of. At the property valuation stage, honesty is the best policy, because the discovery of any problem later as the process goes on could lead to long delays or even to the end of the transaction.
You are not obligated to make any decisions at this stage. A valuation report will be provided by the agent, who will let you know what their finding are. You will be given some time to weigh your options. You can agree with them on a convenient date (usually a day or two) to give them your decision, whether you want to continue with them or not.
If you have concerns about the structural aspects of the property, seeking the advice of experts is a great idea. Especially since a valuation is not a guarantee of condition of the property and the valuer is not a whole house inspector. At the same time, experts such as an engineer, electrician, plumber or architect do not necessarily have to be present during property valuation. Their services could be requested before the valuation or after if the results need some corroboration.
Property valuation process involves the use of technical scales to produce an accurate valuation. However there are certain things you can do to improve the value of your home, and tip the scales in your favour. Make sure it is clean and tidy, deodorised and decluttered. The idea is to make sure the property looks in the best shape possible.
The length of time a property valuation takes up mostly depends on the size of the property. Usually, a property valuation appointment takes about an hour during which the agent will look through the property and provide you with a valuation after taking every factor into consideration.
When the property valuation is completed, the agents go on to take a look at the planning restrictions, council zoning and the location of the property. Comparisons are then made between the attributes and sales in the surrounding area in order to provide the final valuation figure.
If you would like to set up a valuation appointment for a property, contact us: 0800 020 9561