What is the cost of a property valuation?

Property valuation cost ranges widely depending on various factors, so it is essential that you do thorough research before entrusting somebody to evaluate your property.

House valuation Melbourne may cost around $300-600 in packed areas like towns and cities. However, they can extend to more than $1000 in low density or rural areas.

The prices for evaluation of property also vary according to how detailed you want the report to be. If you need a sworn valuation for legal purposes or litigation, it will need to have more details than one that you have to give to a lender. If you want a detailed valuation report, it will involve more cost.

Different companies will evaluate your property differently. Some valuations do not need intense labor and can be effortlessly done by utilizing online data. On the other hand, there are some cases where looking at the property is enough for a home valuation. If both the ways aren’t sufficient, companies or agents can inspect the property to give an almost exact valuation.

Free real estate valuations

Free real estate valuations can sometimes be sourced via mortgage brokers, although it doesn’t apply to all types of loans. You can get a free property valuation while buying a property or when refinancing your property loan. However, keep in mind that a mortgage broker always gets commissions provided you avail the loan from them. You will not get a free valuation if that is not the case.

Individual company valuations

There are several individual Melbourne property valuers out there that you can get in touch with. You can easily find them by searching for “property valuers Melbourne” or “sworn valuers Melbourne” on Google search if you live in Melbourne. But you might not see their fees and prices for property valuation unless you put in your details and ask for a quote.

No real estate valuer will have a fixed pricing for land valuations as each of them differ in one way or the other. Contingent on the property type, local area, floor space, and several other factors, the amount of work required on the valuation varies; therefore, the pricing varies too. The ideal thing for you to do is to get some quotes from different valuers and choose the one that fits your budget best.

Bank Valuations

There are times when a lender or a bank will not welcome an independent valuation of property and will require a valuation done on their own. Talk to your bank if they accept a third party valuation or if you have to let them evaluate your property themselves.

This might come at a cost for the applicant, where the cost will vary according to the bank and factors relating to the property too. Usually, a valuation done by individual valuers will cost you lesser than a bank valuation.

You can also ask a mortgage broker how much lenders cost for completing a valuation. You might get a lender that does the valuation for free and opt for them.

Rural Valuations

This type of valuation is harder to conduct. The property valuers do not have enough information on property sales to compare the data. Also, many companies do not prefer to evaluate properties in rural places. This means you have fewer choices when it comes to rural home valuers Melbourne as they are very limited and will also cost you more to complete a valuation.

Is a property valuation worth it?

You get what you pay for. The purpose of an independent valuation is to help you acquire your money’s worth. Property valuations have been popular among investors and buyers since the start of the worldwide financial crisis, and it brought a lot of positive outcomes in the property market. Besides knowing the value of a property, the other benefits that make property valuation worthwhile include:

●        Making consumers know the market value so that they don’t pay more than the actual worth

●        Being able to negotiate the price of the property

●        Preventing under-insurance of your property

●        Being aware of the amount of loan you will receive from the bank for buying a property

How accurate is a property valuation?

You can expect the accuracy of the property valuation to be + or – 10% compared to the actual price. There should not be a heavy variation between the estimated or evaluated price and the sale price. However, even if we expect the valuation and the market value to be not too far, the variance is dependent on the market. For example, if it is a heated market, an anxious buyer may be willing to pay more than the market value. Also, the variation of the prices may increase when there is a drop or rise in the market value too often.

Online price estimates

There are a plethora of online services offering home valuations, most of which are free of cost. They use AVMs (Automated Valuation Models) to estimate a property’s value. They take the data from sources like agents’ records, state governments, and councils that are available for everyone. When they come up with a number, they also look up at the comparable sales, past and recent data, and other features.

However, they don’t do a physical inspection of the property, making it hard to study the aspects of the property that affects its value and price.

Is there a minimum fee?

Some agents may charge a minimum fee, especially if you have a property that is less expensive. The fee depends on which agent you are dealing with. However, most times, they do not list the fee amount as they are usually laid down by the valuers.

Valuers play a crucial role in the work of estate agents. Their primary job is to establish their company or agency and sell the property. Most of the estate agents work on commission, so you can negotiate a bit to reduce the fees or to enhance their packages.