Valuation is the process of estimating the value of something. In the context of real estate, valuation is the process of estimating the worth of a property. There are a number of different methods that can be used to value a property, and the most appropriate method will depend on the purpose of the valuation.
The most common reason for carrying out a property valuation is to provide an estimate of value for the purposes of selling or buying a property. In this case, the valuer will need to take into account a number of factors in order to come up with an accurate estimate, including the location of the property, its condition, the size and layout of the accommodation, and any special features or amenities that it offers.
Another common reason for carrying out a property valuation is to assess the worth of a property for the purposes of taking out a mortgage. In this case, the lender will usually require a professional valuation to be carried out in order to assess the risk involved in lending money against the property. The valuer will again take into account a number of different factors in order to come up with a figure, but the focus will be on the current market value of similar properties in the area.
It is also possible to carry out a property valuation for the purposes of tax assessment or insurance. In these cases, the valuer will need to take into account a different set of factors to arrive at a figure, and the process can be more complex.
Whatever the reason for carrying out a property valuation, the process will usually involve an inspection of the property, a review of comparable sales in the area, and the use of specialist software to help assess the value of the property. melbourne-valuations.com.au