In simple terms, a property valuation is an assessment of the present value of a house or flat on the open market. It’s a process which helps to identify a reasonable, realistic price for a place, and which takes into account a number of different factors, including location and condition, among other elements.
Whether you’re selling, buying, refinancing or are involved in another kind of legal process, a valuation is a vital assessment.
Who does the valuation?
A professional surveyor does this. They will submit a valuation report afterwards, based on the notes and photographs taken at the property during their visit, which will typically last at least an hour. They will inspect every room, as well as outside spaces, and look at aspects including:
· Age
· Size
· Wear and tear plus general condition
· Room layout and the number of rooms the home has
· How the property compares with others nearby
· Current market conditions in the area
· The size and state of any outside spaces
· Potential for future development
How does this differ from similar assessments?
· Estate agent valuations are usually free of charge when an agent first comes to see your home, ahead of a potential instruction. And these assessments can be helpful. But a property valuation from an independent surveyor will be done by someone professionally qualified in structure, quality and the cost of improving homes.
· Online valuations: Again, these can give you a rough idea or initial estimate of property value according to information from current market trends, your property’s size and anything else which may affect a house’s price. However, for a detailed understanding of your home’s real value, you’ll need a surveyor to inspect the property and carry out the assessment.
When do you usually need a valuation?
For most people, it happens when they’re buying or selling home. However, there are other circumstances in which you may need these assessments:
1.) Probate
If someone’s estate (of which you are an executor) has a flat or house, you may need to have the place valued, since there could be tax implications. If you’ve inherited somewhere, you can then make an informed decision about selling it, and dividing the estate among several beneficiaries fairly.
2.) Shared ownership
With shared ownership properties, you own a portion of your home while paying rent on the remainder, usually to a housing association. You are entitled to ‘staircase’ or increase your share, and every time you do this, you’ll need a professional assessment of current market value.
3.) Divorce and separation
If you’re splitting up with someone with whom you have joint ownership of a property, this is likely to be your most expensive asset. A valuation helps you reach a fair agreement based on the property’s actual value, and takes out any guesswork.
How should I prepare the house for a valuation?
It’s never a bad idea to clean and declutter ahead of a valuation. The person doing the assessment can then access the various areas of your property easily.
Equally, have any documents or paperwork available that you might need, to help things go more smoothly. This might include, for example, lease information or building plans.
How is the resulting information used?
Buyers, sellers, lenders and others use the information from valuations to make informed decisions about property transactions. If you’re selling, you identify a realistic, attractive asking price. If you’re buying, again it ensures the price being paid is fair. Lenders use valuations to assess the property’s worth and decide how much they’re prepared to lend a borrower.
Let Carter & May take you through the process
Carter & May, the leading, award-winning independent estate agent for Salisbury, covers the city centre and the surrounding areas. Book an initial valuation through us today. We’ll then be with you from start to finish, whether you’re buying or selling, including recommending a qualified surveyor to carry out a professional valuation.
Get in touch and start planning your next move today.