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When should I get a property valuation?

By: Kelly Bellerson

There’s a multitude of reasons why you might need a property valuation, but knowing exactly when you need one is quite different.

Buying or selling

Perhaps an obvious one to begin with, but a property valuation is vital if you are looking to sell your property or purchase a new one.

Buyers will want to ensure they’re paying a fair price, while sellers will want to know what the best asking price is to maximise their returns.

A property valuation can provide an objective assessment of a property’s current market value, helping both parties make informed decisions.

Financing or refinancing

If you’re seeking a mortgage to buy a property or considering refinancing an existing one, lenders often require a property valuation.

Lenders want to know the value of the asset against which they are lending money to assess risk accurately.

A property valuation ensures that the loan amount is aligned with the property’s worth, preventing overborrowing or underestimating collateral.

Estate planning or probate

Property valuations are necessary in estate planning to determine the value of assets for inheritance purposes.

When a property owner passes away, their estate may be subject to probate, and the value of the property must be established for tax and distribution purposes.

A valuation can help inheritors and executors navigate the legal and financial aspects of the estate.

Property tax assessment

Local governments use property valuations to determine property taxes. If you believe your building has been overvalued, undergoing a valuation process can help you contest your property tax assessment. On the flip side, a property valuation may also uncover that your home is undervalued, potentially leading to increased tax liability.

Home insurance

Property owners often obtain homeowners insurance to protect their investments. Insurance companies may require a property valuation to determine the appropriate coverage amount. A proper valuation ensures that your property is adequately insured, safeguarding you against financial loss in case of damage or loss.

Investment decisions

Real estate investors frequently use property valuations to assess potential investments. Before purchasing a property, investors want to estimate potential returns, evaluate rental income, and understand the overall financial viability of the investment. A property valuation provides the foundation for these assessments.

Home renovations and improvements

When planning significant home renovations or improvements, property owners may need a valuation to understand how these changes could impact their property’s value. It helps in making informed decisions regarding the return on investment and budget allocation.

Legal disputes

In the event of legal disputes such as divorce or property partition, property valuations can be crucial. Valuations provide an objective measure of the property’s worth, helping to ensure equitable distribution among parties involved.

So, when do I need a property valuation?

Property valuations can often be a valuable tool to ensure you have a clear understanding of your property’s worth. Whether you’re buying, selling, insuring, or managing a property, knowing when to seek a property valuation is vital.

These valuations provide clarity, confidence, and the necessary information to make informed decisions, protect your investments, and navigate legal and financial matters related to your property.

You can seek a property valuation at any time, don’t be afraid to get in touch!

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