There are several types of property valuations, including:
- Automated price estimates
- Appraisals and privately ordered valuations
- Bank valuations
Automated price estimate
An automated price estimate is a way to quickly gauge a property’s estimated market price. It can be useful when starting to think about buying property in certain areas or getting an idea of what your current property might be worth.
Appraisals & privately ordered valuations
Home owners and sellers can also approach a real estate agent for an appraisal, or a valuer for a privately ordered valuation of their property at any time. Privately ordered valuations are not used by banks when making lending decisions, but can provide a guide as to the estimated market value.
Typically, a valuer will look at things including:
- Size of the property
- Number and type of rooms
- Fixtures and fittings
- Areas for improvement
- Building structure and condition (including faults)
- Standard of presentation and fit-out
- Ease of access, such as good vehicle access and a garage
- Planning and restrictions and local council zoning
- Recent sales in the area and other market conditions
Bank valuations are used to determine the Loan To Value Ratio in a home loan application and will impact the amount that a bank is willing to lend. Bank valuations are for mortgage purposes only, so you shouldn’t rely on them for any other purpose.
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