Among other things, the condition of the property plays a crucial role in its valuation. If it is in poor condition, it will reduce its value. I strongly suggest you to visit Melbourne Property Valuers Metro to learn more about this. Similarly, if it is new and well-maintained, it will be desirable to buyers. Apart from these aspects, the valuator will also consider the structure.
In addition, the appraiser must know the zoning and development potential of the land. The size of the building and the number of rooms must also be noted. The unique features of a property are also noted. In short, the valuer’s job is to determine the “market value” of a property.
The value of a property is determined by calculating the total market value of the property and the depreciated value of improvements. The value of improvements is often abbreviated as RCNLD (reproduction/replacement cost new, less depreciation). Replacement cost refers to the cost of building the same utility with modern design and workmanship. However, when using the RCNLD approach, appraisers deduct a factor for functional dis-utility that comes with the age of the building.
Apart from the location of a building, the quality of construction, appliances, and aesthetics also play a major role in determining its value. A property with better accessibility to major locations is likely to fetch a higher price. Similarly, crime rates and other factors may have an impact on the value of a property.
Property valuation professionals perform an internal and external inspection of the property to determine its value. They take measurements, take pictures, and interview the owner to obtain a fair picture of the home. During the evaluation, they will also evaluate the land component of the property, which makes up a large part of its overall value.
The property valuation process is often an essential part of selling and buying property. This process helps buyers and sellers determine what the asking price should be. This can determine whether the property is worth selling for or earning market-related rent. The final price may be higher or lower than the valuation. So, a professional property valuer is a valuable asset in a property sale.
A property valuation can be done by an independent surveyor or by an estate agent. However, a property valuation should be done by a qualified surveyor, as the valuation done by an estate agent can be inflated and used to sell a property. The latter will be based on the actual facts of a property and its location.