How Does The Valuer Work Out The Market Value?
A property valuer combines all their knowledge and experience with their observations and research undertaken on the a property and its surrounding area, and comes up with a market value.
A property valuer will:
- Inspect the house inside and out.
- Measure the dimensions of the house and rooms.
- Note the building construction type and the materials used.
- Estimate or find out the age of the house.
- Rate the condition of the house.
- Inspect the house inside including looking at walls, floors, ceilings, doors, design features, natural and artificial light, ventilation, exterior cladding, the roof, guttering, and fencing.
- Take into account outstanding maintenance.
- Measure garages and note car parking and access.
- Inspect the site noting any issues such as flooding, drainage, and subsidence.
- Check out the immediate neighbours, the street, and the local area - and will note positives and negatives.
- Work out the distance to the centre of town and look at the convenience of public transport.
- Refer to the district plan and note the present use of the property in relation to its zoning.
- Take into account the type of title.
- Collect data about recent sales that can be used to value the property.
- Make an assessment of marketability based on their observations.
- Take into account the current state of the real estate market for that type of house in that area.
- Prepare a written report.
The valuation is not guesswork! A lot of analysis goes into a valuation report. A property valuer has to be confident that they are right, as people depend on their assessment and, legally, they can be held responsible if they get it wrong.
Valuers can also help you out with estimations of what a house could be worth after planned renovations. You can provide a Valuer with a brief of your plans and they can give you a post renovation estimate of worth that can help you work out if an investment in renovations is worth it.