There are two key things that are considered when putting a number on your property value: location and land size. Since these two factors are not under your control, fetching a favorable valuation quite obviously depends on choosing the right property in the first place. While you should always consider the current market value at the time of purchase as well as future prospects, location and land size are two things that will not change tremendously over the course of ownership.
If you’re ready to sell, however, a good valuation will allow you to set a higher price and earn a better margin. While location and size still play big roles, there are a few things you can do to ensure that you get the highest value possible. And no, they are not as complicated as you think!
Tips For Getting an Accurate Property Valuation
- Clean and Ensure Good Presentation. How your property looks is the first thing considered in its valuation. One look can affect the number it fetches more than you’d think! To ensure that you can get the best value for your property, clean and declutter both the interior and exterior before the valuer arrives. First impressions are vital if you want a reasonable valuation, and a nice-looking place is the first step to that. If time and budget allow, consider a fresh coat of paint, a mended fence, and a number of other small repairs that will indicate that the property has been kept in good condition. If a buyer sees a clean and neat-looking property, they will instantly favor it—and valuers know this!
- Keep Tabs on Local Sales Evidence. The sales prices of similar properties in your neighborhood are good indicators of the price range you’ll be working with when your property goes on the market. If you know of homes in your neighborhood that have recently been sold, keep tabs on their sale prices and pass the information on to the valuer. Knowing the value and sales prices of similar properties will come in handy when your valuer assesses how much yours is worth. Auctions, open homes, and private sales in your area are great opportunities to obtain information. Hold on to the sales brochure so your valuer can contact the agent assigned to that sale and get the value of the sold property.
- Check For Relevant Rates Notices. Valuers also consider the municipal or council rates for your property. Typically this includes information like “site value” or “unimproved land value” figures that show the value of the land only. There can also be an “improved value” figure that’s based on the land and the building. These values are assessed on a statistical basis, so they might not be completely accurate. Still, they can help your valuer get a ballpark figure. In addition, it will let you know where your property stands in relation to the rest of the market.
- Avoid Rushing Your Valuer. Our last and final tip is to avoid asking your valuer what your property’s worth after one look. Rushing them won’t do you any good because the valuer will need time to refer to several documents and narrow down an accurate value. In the process, they will apply two methods: direct comparison and summation. The first method, direct comparison, analyzes recent sales or similar properties in your neighborhood. The valuer might compare the rate per square foot, the location, and the quality of your property during the process. The second method, summation, involves the assessment of land value and the added value of improvements on the area, such as new buildings. The added value is generally based on market evidence. Given the time and attention to detail required for these two processes, your valuer will need some time to come up with an accurate number. Rushing them may mean ending up with an inaccurate value for your property.
The Bottom Line
To sum up, the best ways to get the best valuation for your property is to keep it neat and tidy, provide correct and helpful information, and let the valuer do their job.
Apply For a Mortgage To Shannon Christenot Today!
If you are a first-time property buyer in Los Angeles, CA, and want a mortgage broker’s opinion, Shannon Christenot can guide you through. We will help you know more about the market and the properties you are eyeing.
We also offer Veterans Affairs (VA), Federal Housing Administration (FHA), and Home Loans to help you get the property you want. To get a professional opinion and know more about our services, contact (818) 601-2231.