When it comes to buying or selling a property, the value of that property is crucial. After all, you don’t want to overpay or sell for less than your home is worth. That’s where property valuations come in. A professional valuation will help ensure that you are paying or receiving the right amount for your home. Valuers such as Sydney Property Valuers Metro use various methods to value properties, but the most common is the comparative market analysis. This approach looks at recent sales of similar properties in the same area to determine what your home might be worth. Other factors, such as the condition of your home and any unique features it may have, will also be taken into account. If it’s your first time dealing with property valuers, all this may sound complex and expensive. However, This post will explain everything you need to know about valuations, including how much they cost. So, read on to learn everything you need to know about property valuations.
How much does a valuation cost?
Valuations are not an exact science, so the cost of a valuation can vary depending on several factors, including:
The location of your property will affect the cost of your valuation. Valuers need to research recent sales in the area to get an accurate idea of what your home might be worth. So, if your home is located in a popular area with many recent sales, the valuation should be relatively easy. If, however, your home is located in a less popular or more rural area, it may take the valuer longer to find comparable sales. This means that the valuation could end up being more expensive.
2. Type of property
Flats and apartments are generally easier to value than detached houses because there are usually more recent sales of similar properties to compare. On the other hand, owning a detached house may take the valuer longer to find comparable sales. This means that the valuation could end up being more expensive.
3. Condition of property
If your property is in good condition, the valuation should be relatively straightforward and cheaper. However, if your property needs repair or is located in an area with high crime rates, it may be more difficult for the valuer to find comparable sales. As a result, the valuation could end up being more expensive.
4. Size of property
If your property is small, the valuations would be cheaper. However, if your property is large or located in a remote area, it may be more difficult for the valuer to find comparable sales. As a result, the valuation could end up being more expensive.
5. Type of valuation
There are two main types of valuation: desktop valuations and on-site valuations. Desktop valuations are typically cheaper because the valuer does not need to visit your property. However, they are less accurate than on-site valuations and may not be suitable if you are planning to sell your home. On-site valuations are more expensive because the valuer will need to visit your property. However, they are more accurate and give you a better idea of your home’s worth.
6. Reason for valuation
The reason for your valuation will also affect the cost. For example, your lender will usually require a formal valuation carried out by an RICS-registered valuer. This type of valuation is more expensive than a simple market appraisal because it is more detailed and comprehensive.
7. The company you’re hiring
Different companies charge different fees for their services. Some companies may offer discounts if you use their other services, such as mortgage advice or conveyancing. It’s always worth shopping around to get the best deal.
As you can see, several factors can affect a valuation price. However, valuations usually start at around $300 and can go up to $1,000 or more depending on the factors mentioned above.
Can you do evaluations yourself to save money?
If you’re looking to save money on your valuation, you may be tempted to do it yourself. However, we would not recommend this for several reasons:
- Appraisers are licensed professionals who have undergone years of schooling and training. They know how to value a property using the latest industry standards properly.
- Appraisers have access to data that the general public does not. This data includes recent sale prices of comparable properties and detailed information on the property itself.
- An appraisal is not just a simple math equation.
There is a lot of analysis and judgment involved in determining a property’s value. You may think you know what your home is worth, but an appraiser will be able to give you a more accurate estimate.
So, while you may be able to save some money by doing your valuation, it’s probably not worth the risk. It’s better to leave it to the professionals.