Not doing valuation renders property ownership and transactions insignificant. You may never find property valuation a necessary expense until you have a property to sell or buy. Property valuation helps you to know the real estimated value or the worth of your property. This helps in avoiding loses when selling them or spending more when buying.
Haley & Associates explains why property valuation is crucial.
You Don’t Overcapitalize
Those carrying out major renovations should find property valuation services important in all aspects. Without the help of a professional valuer, you may not know if you’re overcapitalizing during the renovations. Professional real estate agents or valuation service providers help you know the available additions that could help add value to their properties. For instance, adding walk-in wardrobes to the 4th or 5th floor bedrooms could reduce the resale value of that property. This could be serious, especially in areas where families experience demographics.
You Build Equity
The best time to carry out property valuation is at the start of a new financial year. The property value may accumulate specially if you don’t do valuation often. This helps you create sufficient equity, which you may use as a deposit for another property. In a hiked market, you could leverage to the hilt. If you’re planning to buy an investment property, it’s advisable to know the amount of equity you’re entitled.
It Becomes Easy to Refinance
Carrying out a preliminary valuation helps you to know whether you own more than 20 percent of the property. Lending standards are tight and getting a mortgage is no longer obvious even when one’s loan to value ratios (LVR) is more than 80 percent. Once you got your loan to value ratios down after a valuation process, you may refinance it without incurring the mortgage insurance expenses that lenders quote.
The market value of different property changes within a short time. You shouldn’t assume that the property’s worth 20 years ago would still be the same today. That’s why any property owner should look for professional valuers to know the current actual value of their property.