To understand the difference between price and value. Price is what you pay the vendor. Value is what your property is worth and can be accurately assessed by a competent, qualified valuer.
To guide your investment/buying/selling decisions. A property investment is one of the biggest decisions you will make, yet people make them without any objective advice. On the other hand, people always seek qualified financial advice when making other investment decisions.
For an objective assessment. A reputable valuer is objective, an estate agent acts on behalf of the vendor. The aim of an estate agent is to get the maximum price for the vendor. Relying on the estate agent to set the price could see you paying over the odds. Choose a Certified Practising Valuer (CPV).
A reputable valuer is objective, an estate agent acts on behalf of the vendor. The aim of an estate agent is to get the maximum price for the vendor. Relying on the estate agent to set the price could result in you paying over the odds. Choose a certified practising valuer (CPV).
Personal attachment can cloud judgement. Everyone forms emotional attachments to the homes they live or a property they wish to buy, which can affect how much they believe they are worth. An independent valuation can provide some clarity and prevent unrealistic expectations. If you are selling, a valuation can provide a good idea as to what you can realistically expect it to sell for – it may in some cases be more than you think it is worth.
A valuation is a legally binding document and so can be a valuable document when negotiating with buyers/vendors and if any disputes arise.
A valuation is tax-deductible if the property is held for investment purposes. So you get an objective assessment of the value of your property and can claim the cost as a deduction from your annual tax assessment.
Prevent any financing shocks. This is particularly an issue if you are buying an apartment off the plan or a house-and-land package, where the price you pay may be affected by rebates, incentives, developer profits, marketing costs and a change in value over time. A lower valuation may require a buyer to dip into the hip pocket or be forced to take out lenders mortgage insurance.
And if you want to get some perspective and objectivity on your property’s worth but don’t wish to use a property valuer these are four alternatives to consider (or you could do them all):
Looking at real estate websites.
In addition to seeing what prices other comparable properties in your area are advertised for some listings website provide a “sold” section so you can view recent sales.
Call a couple of local estate agents
Speak to a few estate agents to get a sense of what properties have sold for in that area and if you are negotiating a fair price. A local estate agent that is not acting on behalf of the vendor you are negotiating with can be good source of knowledge and information.
Engage a buyer’s agent
Unlike an estate agent, a buyer’s agent will act on your behalf and seek to negotiate the best possible price on your behalf.
Buy a property report
There are a number of data providers that sell property reports with detailed sales histories right down to the suburb and street.