A property valuation is important when you are buying, selling, or remortgaging a property. A property valuation provides you with an estimate of the market value of your property based on factors such as location, size and condition. When selling your home, a property valuation will help you decide what price to market your property and whether or not to accept any offers you receive. When remortgaging, a property valuation will help you assess how much you might be able to borrow.
How much does it cost to get a property valuation done?
A property valuation typically costs nothing. Real estate agents should provide you with a free property valuation because it gives them an opportunity to build a relationship with you, view the property, offer their services, and potentially sell it.
What can I expect from a property valuation report?
A property valuation company should provide you with a comprehensive and accurate estimate of the market value of your property. The company should have knowledgeable and experienced appraisers who will inspect the property, gather information about its location, size, and condition, and provide you with a report of their findings.
Are bank valuations below market value?
When applying for a mortgage or refinancing, the bank will complete a valuation of your property. You will often find that the bank valuation is lower than the market valuation.
The market valuation reflects the price that your property could be bought or sold in the current market. But, a bank will usually apply a more conservative approach to valuing your property than the market does. The bank valuation will be driven less by emotion and more by comparative data than the market valuation. Plus, the bank will know that in a worst-case scenario, if you were to default on the mortgage, they may be forced to sell the property at below market value. So, the bank valuation is often lower than the market valuation.
This can be frustrating for individuals as it increases the cash required to buy a property, and it can limit the equity which can be withdrawn when refinancing. Whilst there isn't much that can be done about this, if you are refinancing, you should ensure your property is in good condition and any improvement works are completed prior to getting the valuation.
How often should I verify the value of my property?
Dubai’s real estate market is very fast-paced, and it is recommended that you check the value of your home regularly, at least once a year. This will help you stay informed about changes in the market and the value of your property, and it will provide you with an idea of how much you can market your property for when you decide to sell.
What is the difference between property valuation and property evaluation?
Property valuation typically refers to the process of determining the monetary value of a property for a specific purpose, such as for tax assessment, insurance, or mortgage lending. This involves analysing various factors such as the property's location, size, condition, and comparable sales data.
Property evaluation is a more general term that can refer to the overall assessment of a property's condition, features, and potential value. It may include a variety of factors beyond the monetary value, such as the property's suitability for a particular use or its potential for future development.
In summary, property valuation tends to be a more specific and quantitative process focused on determining a property's monetary value for a specific purpose, while property evaluation is a broader assessment of a property's overall attributes and potential value.
How to make a property more valuable?
There are several ways to make a property more valuable, such as:
1. Renovating and updating: a home that is outdated or in need of repair is unlikely to be as valuable as one that is well-maintained and modern. Consider making updates such as updating the bathroom or kitchen, painting the walls or changing the flooring.
2. Enhance curb appeal: first impressions are important, so making the property more visually appealing from the outside can make a difference to its value. Consider landscaping the garden or painting the exterior.
3. Extend: increasing the size of the property can significantly increase its value. Consider extending the property or converting an unused space.
4. Make energy-efficient upgrades: these can not only save money on bills but also add value to the property. Consider adding insulation or upgrading to energy-efficient windows or appliances.
5. Keep the property clean and well-maintained: Regularly cleaning and maintaining the property can help keep it in good condition and increase its value. This includes things like cleaning the carpets, repairing any damage, and keeping the property free of clutter.
How long will a property valuation take to complete?
The length of time it takes to complete a property valuation depends on several factors, such as the size of the property and the complexity of the appraisal. An agent will arrange to complete a thorough inspection of the property at a time that suits you. Then, after considering comparable data and market conditions, the agent should provide you with your property valuation at the end of the inspection, or shortly afterwards.