What’s the value of a valuation?
Property sales values in many areas have risen over the last year – and many investors may not realise just how much their asset is worth these days.
Even if you are not planning to sell, it is important to have a clear handle on the current value of your asset. If the property has increased in value, you may be able to borrow more money to build your portfolio or raise funds to use for other things.
Landlords who want to accurately track the value of their property are well advised to consult a professional for an unbiased and independent opinion about how their asset compares with others on the market.
Local real estate agents are usually only too happy to provide a free “appraisal”. These, backed by information from internet sources such as RP Data and Residex, can be useful in determining value – although some agents estimate on the high side to curry favour should the investor decide to sell.
A formal valuation by a qualified valuer, is the gold standard if you really want to know what your property is worth. A valuer will produce a written report noting all relevant considerations including location, comparable sales, access, planning restrictions and council zoning.
The following tips can help ensure a property receives the best possible valuation:
- Presentation – neat and tidy, outdoors and in.
- Sales evidence – if houses nearby have sold recently, have the relevant sales figures and agent contact details at hand.
- A rates notice – even though these are often inaccurate, they can provide a valuable point of reference to other properties in the same local government area.
- Preparation – if you’re planning improvements, get them done before the valuer comes as good intentions don’t have a dollar value.
- If you’re planning a renovation, and have plans already drawn up, make it clear you want a valuation “as if complete”.
- Improvements – if you’ve made improvements recently, provide the valuer with a written list of what they were and how much they cost.
- Areas which have the largest impact on values include kitchens, bathrooms and outdoor living areas.