The Top 5 Property Valuation Misconceptions
When people are purchasing or selling a property, they have a lot of cobwebs in their minds which they need to erase if they have to make the right property decision. For example, many are of the thinking that if a property has more rooms it would fetch a higher price or even more shockingly, an auxiliary like a pool adds no bearing on the property value.
Debunking these notions and others this blog exposes some of the common myths that people have with regard to property valuation.
A swimming pool will not bring in any value
This is a major generalization that people throw around. The fact is that it depends on the market for your real estate. At some locations, people are ready to pay extra for the facility of an in-house pool. They look at it as a status symbol, an opportunity to have a leisure activity at their doorstep (more so, as people are more health-conscious these days, and swimming is a good exercise) and the chance to bond with family and friends over a swim.
Banks’ valuers are middle of the road
Bank valuers are middle of the road, conventional. Wrong. When banks want a property to be evaluated they use the services of an independent external valuer. Their residential valuation will not subscribe to any party’s vested interest. They have to be careful because a valuation report can be challenged in court. This is why their valuation has to be seeped in market data and comparable sales in the location.
I will repaint my home. It will fetch me a higher valuation.
Just before selling their property some homeowners put in efforts to ensure their homes look good enough to fetch a higher price. And so the house is freshly painted along with other interior designing touch-ups with an influx of a lot of money. But in reality, the buyer will have his taste concerning interiors and will probably redo the home the way he likes it. In the light of this subjectivity, it is best that the house if it has to be painted, is done in neutral colors.
Property prices will only go higher
We usually think that a right market environment that will push our residential property valuation higher is something that is here to stay. After all, the population will always increase, and land will always be scarce. But local property prices do fall due to adverse economic conditions which can have a speedy and damaging impact on local property markets.
Investment in a commercial property is riskier than a residential one
Again this is a generalization. You must evaluate the commercial or residential property on its merit. If a retail outlet is suitably located and there is an extended rental contract tied to it, the commercial property can turn out to be a great investment. Even if the plot does not increase in value, returns will be seen via the long-term lease.
Do you need a property valuation?
Contact an experienced residential real estate appraiser. They appraise for all types of housing units, including condos, townhouses, low-income housing, apartment buildings, and multifamily dwellings. The real estate appraisal process seeks to provide you with the most accurate assessment of the value of the property in question. They will evaluate the state of the real estate market in your area, and a comparison will be made between your property and at least three other similar properties.
They will determine any severe issues with the property in question, such as any structural problems or if extensive repairs are required. An estimate will be provided regarding how long it might take to sell the property.
Adapted For Local Context: MyHomeCheck
Article Credit: Robert Clifford