Evaluation is always done when you want to use your property to get some equity, take a loan, or you want to purchase a home. The lender uses an independent bank valuer to put a dollar value on a property. Valuers are generally conservatives, so it is essential to know what reduces or increases the value of your property. The cost of your property determines the amount of money the bank will give you for renovation or property purchase.
Key things that determine your property value:
Land Size
The land value is always worth several times more than the property on it. A small house on a waterfront block can sell for millions. The bigger the size of land the higher the value of the property.
Lot Attributes
Other contributing factors to the value of the estate include topography, shape, and aspect of the land. For instance, a block with water views will have more value compared to the one with the obscured view. A gently sloping and level ground is more expensive than a rocky and steep piece of the same size. A rectangular or a square-shaped portion will have more points compared to an odd-shaped one.
Street frontage
You have probably head real estate agents speak of “double fronted.” This characteristic will automatically raise the price. Street frontage increases the value of a property. For a better deal, the width should at least be consistent with the suburban norm. The value will decrease if the width is too narrow.
Property Size
If the floor space of the property is significant, the more points it will accumulate. Most lenders avoid lending money for properties under 40 square meters. Some will even shy away from anything under 50 square meters. If you renovate your house and increase the floor space, you will have an advantage when the valuer visits your home.
Layout
Buyers love a well-maintained and practically laid out property. Some zones of the house should be grouped together. For instance, the bedrooms should be on the quiet side of the house, except for a dedicated parental wing. The bathroom and guest toilet should be in the middle of the house. The valuer also takes into account the general appearance and condition of the house. The property should sit comfortably with the streetscape.
The number of bedrooms and bathrooms
The more bedrooms and bathrooms, the higher the value. You can reconfigure your property to include an extra service room without compromising the entire floor space. If you have more than three bedrooms, you should consider including a second bathroom.
Kitchen
The kitchen sells the whole house. The quality of the kitchen appliances and fittings count. The size of the kitchen is also a crucial determinant. However, do not go over the top and spend too much money when renovating the kitchen. Make sure that the fixtures and fittings are appropriate to the value of the entire property.
For more information on property valuation, click https://www.adelaidepropertyvaluations.net.au or check out some of my articles on how to add value to your property.
This is a collaborative post
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