What is a Property Valuation and How Long Do They Take?
Carrying out a property valuation on your home can help you determine its market value for the purposes of selling, refinancing, or estate planning.
Typically carried out by professional appraisers or real estate agents, a property valuation can help you to compare your options and make steps towards your future as a homeowner.
In this article, we’ll cover everything you need to know about property valuation — from what it is to how long it takes.
Key Takeaways:
- A property valuation assesses the estimated property value of real estate.
- Property values will be determined based on the current state of the property market and the available market data.
- A standard residential property valuation can take anywhere from a few hours to an entire day, depending on the size of the property.
What is a property valuation?
A property valuation assesses the estimated property value of real estate. It’s typically conducted by qualified appraisers or real estate agents, who will take into account the location, size, and condition of a property before making their decision.
Property values will be determined based on the current state of the property market and the available market data.
The resulting valuation report is used for a variety of purposes, including when selling the property, obtaining a mortgage, estate planning, or tax assessments.
How long does it take to do a valuation report?
A standard residential property valuation can take anywhere from a few hours to an entire day, depending on the size of the property.
The availability of property data and access to the home can also impact the timeline. If the valuer needs to gather additional information or access to the property is restricted, it may delay the process further, and it will take longer to get an accurate estimated property value.
It’s best to consult with a property sales information provider to get an accurate estimate of how long your valuation will take.
How long does it take to hear back from a house valuation?
The time it takes to receive the estimated value of a property varies depending on who is carrying out the property search.
If the valuation is conducted by a professional appraiser, they will typically provide a written valuation report within a few days to a week after visiting the property.
If the valuation is conducted by a real estate agent, they may verbally agree on an estimated value of the property value while carrying out the inspection and will supply a more detailed report within a few days.
In some cases, if the valuation is required for mortgage or financing purposes, the lender may also require additional reviews or approvals, which can delay receiving the estimated value.
What do they look at when valuing a house?
Appraisers and agents use property details, professional expertise, and available market data to determine the fair market value of a property.
Here are the property details typically under consideration:
- The location of a home is one of the most critical factors in determining property values. This includes the neighbourhood, proximity to amenities such as schools, shops, and transportation, and the desirability of the area. Market data is used to determine the average sale price of similar properties in the area.
- The size of the property, including the number of bedrooms and bathrooms, the layout, and the property’s condition, also impact its value.
- Comparable sales: Appraisers and agents look at recent sales of comparable properties in the same area to determine the property’s market value. This is known as the comparative market analysis (CMA).
- The age of the property and its condition also impact its value. Older properties often require more maintenance, while newer properties typically have modern features and amenities.
- Any improvements or upgrades made to the property, such as renovations, landscaping, and extensions, will increase its value.
- Economic conditions, including interest rates, inflation, and the state of the local real estate market, can also impact the value of the property.
What happens after property valuation?
Once you’ve received the relevant property information after valuation, you can begin the next process, depending on what your goals are.
Some typical next steps include:
Listing the property for sale
If your goal is to sell the property, determining the property’s market value for sale will allow you to confirm the asking price and publically list the property.
Refinancing
If the valuation is conducted for mortgage or refinancing purposes, you can also use the valuation report to determine the loan amount and terms.
Estate planning
If your goal is to start the estate planning process, an accurate valuation can determine the value of the property for tax or inheritance purposes.
Property tax assessment
If the valuation is conducted for property tax assessment purposes, the local government may use the report to determine the property’s assessed value and the amount of property tax you owe.
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FAQs
How do I work out my estimated property value?
If you want to work out your property valuation yourself, you can use online valuation tools, including Zillow and Redfin, to determine your home’s worth.
What is an Australian credit licence?
An Australian credit licence (ACL) is a license required by any person or entity that engages in credit activities in Australia.
How much does a property valuation cost?
A basic valuation report on a residential home typically costs between $200 and $600 in Australia, depending on the location and size of the property.
