If you’re a homeowner or someone who invests in residential properties, you’ll want to know what you can do to make your house value higher. By understanding the different factors that impact a valuation, you can take the necessary steps to boost your home’s worth.
You’ll want to make sure you take care of everything prior to getting an independent property valuation. With proper preparation, you can effectively increase the value of your property.
An independent property valuation is the most reliable method of finding out a property’s value. There are several different house valuation services in Sydney to assist owners, buyers, and sellers.
A valuation is a service by which a professional valuer performs a detailed inspection of your home to determine its fair market value. A combination of reliable methods is used and valuers consider hundreds of internal and external factors.
A valuation report from a qualified valuer is seen as an official document and serves as definitive proof of the subject property’s value. This makes it useful for all sorts of legal, private, and business transactions or negotiations.
Expert valuers are well-versed in what adds most value to a house, and what leads to a decrease. By considering the different factors that a valuer is going to look at, you can make sure you are prepared for an independent valuation service.
What adds value to a home?
The value of a home is determined by a wide range of factors, some of which you may be able to influence. Understanding how its value is determined is key to knowing how to increase a property valuation.
A residential valuer will consider the following when preparing a valuation report:
The location
Where the property is located plays a key role in its final value. The proximity to key facilities such as public transport, hospitals, schools, restaurants, entertainment, and more all impact the value of a property.
The size and space
For the most part, the bigger the property, the higher the value. People want to be comfortable, and having a sufficient amount of storage and floor space, as well as enough bedrooms and bathrooms can ensure that. Adding extra rooms and maximising the property’s space can boost its value.
The Kerbside appeal
Never underestimate the power of your property’s kerbside appeal. The front of your home is what attracts buyers and investors. Maintaining your lawn, driveway, and garage can help keep your home’s value up.
The features and amenities
In today’s world, people want options for entertainment and relaxation in the comfort of their own homes. However, despite what you may think, the best features and amenities you could improve on lie in the kitchen and bathrooms. These spaces should be the main focus of your improvements.
The market conditions
Of course, the existing market conditions directly impact a property’s value. As such, valuers have to stay constantly up-to-date with an ever-changing housing climate.
Getting ready for a valuation
Before the property inspection takes place, you’ll want to be properly prepared. This can guarantee a swift process with no unexpected hiccups.
By looking at all of the above-mentioned factors, you can plan ahead and take care of certain things before the inspection.
Some of the things homeowners should do prior to an inspection include:
Cleaning and decluttering
Don’t undervalue the importance of a clean-looking and well-maintained house. By taking care of any outstanding rubble and decluttering any messy areas, you can avoid a potentially damaging effect on the valuation.
Repairs
Before the valuation, you’ll want to take care of any electrical, plumbing, or general maintenance issues that need fixing. If a valuer identifies broken or faulty parts of the home, it will negatively impact the value.
Gathering relevant documents
Getting all the relevant paperwork ready is a good way of ensuring the valuation runs smoothly and that no key information is missed. By speaking to the firm beforehand, you can find out exactly what documents you need to prepare.
Make a list of any features the valuer might miss
If you think there are any important advantages to your property that a valuer might miss, be sure to provide them with a list. Any significant features that you think may be hidden from the surface should be highlighted to your assigned valuer.
Make renovations
A sure way to boost the value of your house is to make some renovations. Adding modern floors, fresh paint, new counters, storage solutions, and more can increase the worth of your property in the long run.
What process do valuers follow?
A professional valuer has been trained to use a combination of reliable methods when preparing valuation reports. Valuers choose a main approach and may use secondary methods to refine the final figure.
A few of the most commonly applied valuation methods include:
The direct comparison approach
The most commonly used approach for residential properties. It involves reviewing the sales of similar properties in the area to determine the fair market value. Once a foundational value is reached, valuers will make necessary adjustments according to the notable differences and features.
To increase the value of your home, you’ll want to have features that make you stand out from the rest. A fresh modern look and a well-designed interior and exterior can help boost the final value of your home.
The income capitalisation method
This method is not used on homes and is reserved for income-producing properties like retail stores or manufacturing businesses. Valuers look at the net operating income of a property and divide it by the capitalisation rate to reach a final figure.
For commercial property owners to increase its value, securing additional income streams can help.
The summation method
Also known as the cost approach, it is mainly used as a secondary approach to refine the final figure. The method involves assigning a monetary worth to each property component, including the tangible and intangible assets.
Adding renovations and new components to a home will increase its value. Owners may be put off by the costly nature, but the boost it provides to your property’s worth is significant.
Summary
Knowing how to make the value of your property higher can help you effectively prepare for an assessment of your home. By carefully reviewing what valuers are looking at, you can make the right changes or additions to boost your house’s value.
Valuers look at a number of different factors when preparing valuation reports. This includes the size, space, location, features, and market conditions. Understanding the process behind the inspection can help you make sure everything is taken care of before the valuation.
A homeowner can make renovations, perform repairs, maximise the space, list any important features, gather relevant documents, and modernise the interior to improve the value of the property.
For more information on how to increase the value of your home, don’t hesitate to give us a call. Our experts are ready and waiting to assist.
