How Long Does a Property Valuation Take?
A property valuation is a detailed inspection of your house that helps determine its overall price. The valuer will arrive at a reasonable price that any buyer would agree to pay for your house, which you would accept after the valuation.
Your property valuer will typically take one entire day to inspect your home and complete the preliminary valuation personally. They will inspect both the inside and outside areas of your property. They will assess the property’s layout, condition, aspects, and potential opportunities. Once they inspect the property in detail, they will prepare an in-depth report about their valuation. This report will usually take up to 48 hours to complete. However, this timeframe may vary depending on your property’s complexities. In some cases, valuers may also take seven working days to complete their valuation report.
Table of Contents
- When Do You Require a Property Valuation?
- How Is a Property Valued?
- What Details Will Your Valuer Require to Conduct a Property Valuation?
- Types of Valuations
- Types of Valuation Reports
- How Long Does a Property Valuation Last?
When Do You Require a Property Valuation?
The most common reason for a property valuation is if you plan to list your home for sale. Besides this, other reasons for a property valuation include the following:
- If you are applying for an equity loan or refinancing. The lender, in such cases, will want to know the current value of your property. The valuation report will determine whether your loan application gets approved or not. It will also determine the total amount that the lender will approve.
- To assess the value of a deceased individual’s estate or for dispute resolution.
How Is a Property Valued?
There are two methods to value a property:
The Summation Method
The Summation method includes the valuation of the land as well. The land’s size, location, and local infrastructure and shape are critical to the property’s valuation in this method. If required, land improvements will be added to complete the full valuation. The household is considered a land improvement in the summation method.
Direct Comparison Method
The direct comparison method will compare your property to similar properties in the local market. This comparison will give the valuer a solid foundation for the remaining valuation. Any improvements or adjustments that make the property unique from the other properties in the area will be later included in the valuation. Below is a list of factors that your valuer will consider at the time of a direct comparison valuation:
- Condition of the property
- Property size
- Land size
- Block layout
- Residence size and layout
- Potential for renovation
- Any repairs or renovations made
- Number of rooms
What Details Will Your Valuer Require to Conduct a Property Valuation?
Your valuer will require written permission from you to conduct the valuation. You will also have to provide the following documents:
- Certificate of title
- Relevant sale contract
- Completed appraisals
- Details of council rates
- Information about any repair or renovation work that was done on the property
Types of Valuations
There are three types of property valuations you can choose from:
The valuer will check your property thoroughly and provide a detailed valuation report in a full valuation.
A kerbside valuation is usually granted when a low-risk loan application requires a property valuation. This type of valuation includes an external property inspection. The valuer will not enter the building in this type of valuation. Instead, they will consider sales data from similar properties in the area and other online information to complete the valuation.
A desktop valuation is typically used for a low LVR loan application. The valuer doesn’t visit the property, and online data and references are used for such valuations.
Types of Valuation Reports
There are several types of valuation reports. These reports can be made for any property, including commercial complexes, residential homes, or industrial properties. Listed below are some of the most common types of valuation reports:
Pre-Sale Valuation Report
A pre-sale valuation report provides the current market value of your property. You could request this report to get an accurate idea of how much your property can sell for if you sell it on the same day. This report provides a list of comparable local sales in your area to give you a good idea of how your property will perform on the market. If you are not the seller and are looking to purchase property, you can also request the valuer to prepare a pre-purchase valuation report to help you understand market rates before purchasing any property.
Most of the time, banks won’t approve a mortgage without getting a valuation report of the property. In addition, if your loan is high-risk, they will insist on a valuer visiting your property and valuing it. You can get an independent valuation or a bank valuation, depending on the lender you choose for your loan. If you have opted for a bank valuation, the valuer will either be an in-house or a contracted valuer. Unfortunately, most of the time, these valuers will have the bank’s best interest in mind rather than yours. On the other hand, if you opt for an independent valuation, the valuer may also keep your interests in mind and provide an objective valuation.
Retrospective Property Valuation Report
A retrospective property valuation report will give you the property’s value for a specific date in the past. This type of report is often used for taxes or for handling estates of deceased individuals.
How Long Does a Property Valuation Last?
Once your property valuation is completed, the report will remain valid for 90 days. The real estate market changes rapidly, and hence your property value can also change after this period. The valuer will also use the inspection date as the valuation date, even if you get the report a few days later.
Whatever your cause for getting a property valuation, ensuring you get your property valued by a licensed and unbiased valuer is important. Hiring a valuation company like Melbourne Property Valuers Metro to conduct the valuation of your property can be helpful. They offer both residential and commercial property valuations. In addition, their API-certified valuers will provide accurate valuations with quick turnaround times.