There are two basic types of Australian home valuations. One is the estimated valuation often provided by your real estate agent when you sell your property. The other is the professional estimate provided by a registered valuator who is hired to valuate your property before you sell to an interested buyer. While you can rely on an agent to give you a decent estimate, and list your house for that price, many buyers will only accept the professional valuation.
If your agent overestimates, you may end up having to take a lot less than you first expected. If your agent underestimates, you may find that you’re not asking enough for your property. Most Australian real estate agents have enough experience to valuate your home for close to what it’s worth, but it doesn’t hurt to ask the agent how many homes they’ve successfully valuated and sold.
What a Professional Valuator Does
A professional valuator charges a fee to come and look at your property and determine the overall value. This is a common practice when selling your property because many sellers want to make sure they list their homes for the appropriate value. Sometimes a buyer will request a valuation to insure that they aren’t overpaying for a home or piece of property. Most buyers won’t close on a home until they’ve received a valuation on the property.
When the valuator visits your home he or she will walk around and inspect your property. A valuator differs from an inspector because he isn’t looking for things wrong with the home that you need to fix. He is simply looking at the size of the home, the age of the home, any improvements that have been made on the home, and the size of the property. He may ask you a few questions about the home to make sure all of the information is correct. Pictures are usually taken and included with the valuation report. After a few days, you should receive your home valuation either by mail or through email.
What Happens After a Valuation?
Many times a valuation is done when a buyer has a true interest in the home. If the valuation is lower than your asking price, a potential buyer will probably want to negotiate on the price. If your asking price is much higher than the valuation, buyers could have trouble getting loans. You may need to consider lowering your asking price if the valuation shows that you’re asking too much for the home. Your agent can help you sell your Australian real estate, but you will need to consider the worth of the valuation when figuring your asking price.