There are two types of market assessment that people refer to when talking about property valuations – appraisals and valuations.
An appraisal is a market indication based on comparable sales stats, it is not a proper valuation and more often than not you will find that an appraisal price is not an indication of real value.
A valuation is a calculated figure based on a number of things, including but not limited to the factors listed below. You can request a complimentary detailed valuation report for your property by following the steps outlined at the end of this article.
- Property location;
- An assessment of the land value and property improvements;
- Property measurements;
- Property presentation;
- Number, type and size of rooms;
- Depreciation of property since construction;
- Sales comparison statistics;
- Building structure and condition; and,
- Planning restrictions and local council zonings.
In addition to the above, the following social and economic factors can influence the value of your property:
- Supply and demand
When housing demand increases faster than supply, then house prices will generally go up;
- Interest rates
When interest rates increase, lenders generally increase the cost of their standard variable rate mortgage payments. Because of this higher interest rates can make buying a home appear less attractive;
- Economic growth
As the economy grows and wages increase, more people can in turn afford to buy a house. This in turn increased overall demand which may contribute to increases in house prices if supply fails to keep up with demand; and,
Increases in migration levels means population increase which in turn means higher demand for homes. Another example of changing demographics impacting the housing market is rising divorce rates, more single people living alone may contribute to increasing demand.
Generally speaking, the value of your property is determined by factors that are outside of your control.
However, whilst there is no definitive list of the features within your control that may add value to your property, the following items have drawn a demand in general and may therefore contribute to improvements in a property’s marketability and value:
- A well-landscaped front yard;
- A covered outdoors area;
- Storage; and,
- Neutral and earthly colour schemes.
When/why do I need to know the value of my property?
- When making a property finance application with a lending institution – property valuation is an essential part of the home loan application process;
- If you are refinancing your mortgage the bank will require a valuation to ensure that the security value of the property covers the size of the mortgage;
- If you are selling your house or making an offer on a new house; and,
- For your own knowledge, benefit and peace of mind.
My property valuation
iconic home loans offer a complimentary property valuation service where you can request a free report on the value of your property. To claim your property valuation today send us an email with the following details:
- Your full name;
- Your preferred contact number;
- Your preferred contact email; and,
- The full address of the property you would like a valuation report for.
Given the current condition of the economy and the all-time low interest rates being offered by Australian banks and lenders, now could be the perfect time for you to review your current financial solution.
You may now be able to access a lower interest rate, reduce your monthly mortgage repayments, access equity in your home or change lenders/product to a more suitable solution.
You can click here for more information on the importance of reviewing your home loan. Please contact us on 1300 663 943 or send us an email if you would like to arrange a mortgage review appointment.
We hope this article has given you a good understanding of your property and its value. As always do not hesitate to contact us if you have any questions.
iconic home loans
The information provided is general only, you should seek independent advice before making any decisions in relation to your personal finance or property. Finance availability is subject to applicant meeting lenders qualifying criteria, and all approvals are at the discretion of the lender.