What is a valuation report?
A property valuation report, sometimes called a comparative market analysis, is a way of assessing the value of a property. The report takes into account both quantitative data and expert local knowledge to find the best, most competitive price for a property. Let’s go into more detail about how the valuation report is calculated.
How is a property valuation calculated?
When calculating the value of a property there are two main categories of information that are taken into consideration.
- House price data from the area
- The properties and local facilities
House price data pulls the value of houses sold in a certain area over the past couple of years. This helps to build a broad picture of what the property market looks like in a particular community. The property and local facilities aspect look at the qualitative information about a property. This can include the structural integrity of the property, what amenities are close, its location, and the sales history of similar types of properties. It also takes into account square metres, room size, the age of the property, and so on. Basically, most aspects of a house are looked at in the valuation report.
Why is a valuation report important?
A valuation report provides an in-depth overview of the local property market. Because it draws from both quantitative data and real-world information it allows our estate agents to find the highest most competitive price for a property. It can also highlight vital areas of improvement in a property such as kitchen upgrades to help further boost a property price. Finally, the valuation report sets a reasonable pricing expectation. While it is important to sell a home for the highest price, if that price isn’t realistic it will just sit on the market without being sold.
James Douglas can provide accurate property valuations due to our access to property data and our local market knowledge, please contact us for your free valuation report and start with obtaining a guesstimate online property valuation.