In this two part site I’ll look at a professional valuer performs a valuation on a property, what challenges they confront, and, significantly that knowledge can be used by property investors to their advantage.
WHAT’S AN OFFICIAL PROPERTY VALUATION?
Quite simply, a valuation is the estimated market value of the property based on what it’d sell for under ordinary conditions where the purchaser and seller are acting on the exact date of valuation and without undue pressure.
The dissimilarity between proper valuation as well as a market assessment (usually done by a property agent) is that a proper valuation can simply be done by a competent valuer with the prescribed instruction and training.
An assessment is supposed to be more of a guide to just what the property may bring if it was sold, based on recent sales signs and local wisdom.
There are a number of various kinds of valuations, including a Kerbside Valuation, which calls for no internal review of the property, only a ‘driveby’, as well as a Desktop Computer Valuation, which only contains research.
Nevertheless, let’s focus on a Complete Valuation, which includes the valuer undertaking a complete review of the property, including an internal review.