How Much Does It Cost To Get A Property Valuation Done ?

Registered property valuers are talking about how much does it cost to get a property valuation done in Australia so this is a blog post that commercial property valuer wrote how much does it cost to get a property valuation services done in Australia.

So let’s just get straight into it not waste any time property valuations vary in price so it’s important that you do your research before choosing someone to do your online property valuation for you although property valuations tend to range around to dollars in high density areas such as capital cities.

They can stretch out to like a thousand dollars in extremely rural areas so something that you need to consider prices evaluations will also vary depending on how much detail is required valuations required for litigation or lawsuits will likely need to be in more detail than a corporate valuation to provide to a potential lender like a bank.

property valuation

If you’re trying to get a loan the more detailed the report then obviously the more cost that’s going to be involved and different companies it’s important to know different companies do their property valuations differently in some areas.

Real estate valuation can be done simply by using data that’s available online so when you’ve got a market that’s extremely hot stuff selling really quickly like sydney years at the moment what you can do in most cases is simply value of the property based on other comparable sales online going to have to go out.

And visit you don’t have to do anything else in other cases that people will do a driveby of the properties that i’ll just drive down the street check it out and do their online stuff and in other cases a property inspection needs to be completed before an accurate commercial property valuation can be given of the property.

So they’re going to have to go they’re going to have to get into the property and look at it and look at it in more detail  property valuations you can sometimes source online valuation if you go through a mortgage broker or some lenders will give them to you for.

property valuation, property valuers

It’s not available in all areas or on all loans but it’s definitely something that’s worth looking at often you can secure a valuation when perch seeing a property or you can get a valuation because you’re refinancing your property your loan through a mortgage broker remember that a mortgage brokers almost always paid Commission’s by the lender you sign up for.

And they aren’t want to go they aren’t going to want to give you  property valuations unless you get your loan through them so it’s just something to consider if you want that  valuation you may need to go through a mortgage broker to get it individually ordered valuations.

So you can get in contact with one of the many individual property valuation companies out there the easiest way to find them as to do a Google search such as property valuation Sydney or get a property valuation Sydney.

But replace Sydney with wherever you live in Australia whatever suburb you know you might say need instant property valuation in Sydney you know where you might say in gold coast or service paradise or Brisbane or whatever I could not find a single company who offered property valuation pricing.

property valuation

And fees on their website almost all of them require you to submit details for a quote so why don’t these companies have fixed pricing in a world where we can do almost all our research online how come we can’t get fixed pricing from these companies the reason is every single property is different.

And thus every valuation is different depending on the type of property the floor space of local area and many other factors the work needed to get evaluation completed does vary thus the price of evaluation varies you know as I said sometimes they can just.

If it’s a standard you know three bedroom house and there’s lots in the area that have recently sold then it’s going to be really easy to do and they can just do it online but if it’s something that’s you know a bit more abnormal in an area where the market doesn’t move as fast not as many properties to compare it to it’s very hard to do evaluation.

So more work will need to go into it the best thing to do would to be get a few quotes from a few different companies and then pick the one that you liked the best all right bank valuations sometimes a bank or a lender will not accept an independently done.

Property valuation will require their own bank valuation to be done most of the time this is the cost of the applicant you and costs can vary speak with your bank about whether or not they’ll accept a evaluation done by third-party.

property valuation

Or if you have to go through them usually a third-party individually ordered valuations could work out cheaper for you so it’s worth asking the question speak with a mortgage broker as well about the costs and requirements of each lender when it comes to completing valuations because maybe you know if this is something that’s important to you.

You could opt for a lender where the valuation is  lastly rural valuations are harder to do there’s less property sales for the real estate valuer to look at less comparable data and there’s less companies actually willing to do the valuations in rural area especially when you’re going to have to drive.

Or you’re going to have to go in and inspect the area this means your choices of who can do your valuation may be extremely limited and they’re often going to cost you more to be completed so try and source multiple quotes.

If you can before proceeding but if you can’t then you know you’re just going to have to go with whoever is there so to answer the question how much does it cost to get a property valuation in Australia done it can be as cheap as.

If you’re refinancing or getting a new loan and going with the lender who offers that but otherwise you know the to is a good price bracket to kind of work within budget but you’re going to have to go out and get those quotes yourself to work out exactly how much is going to cost you and your individual property.

Commercial Property Valuers – How to Value a Property?

Valuers will talk about property valuation how do you value a property how do you know much how do you know what a property is worth there are three primary property valuation methods first one Property valuers will start with is the sales comparison method sales comparison is what you’re going to use a lot for if you’re flipping houses.

Or if you’re rehabbing a house oftentimes people use this for residential go ahead and spell it out fully or if it’s something they’re holding short-term as opposed to a long-term hold so the way that sales comparison works is you have an area say this is your neighborhood now you’ve got an area here some streets small houses here’s the house that you’re going to buy and probably.

So after you fix it up or whatever you do all right let’s say there’s another house right down here same kind of house same number of square feet very similar location this sold for two hundred and fifteen thousand within the last six months.

Commercial Property Valuers - How to Value a Property?

Then there’s another one over here that sold for say one hundred ninety thousand in the last six months all right so if you do that if you use the sales comparison method you will value this house that you’re buying or selling based on other sales that have occurred of similar houses similar buildings in that same area that is these sales comparison method another property valuation method that you’ll use is the capitalization property valuation method.

So Property valuers have talked about cap rate before if you need a refresher you can go back to the blog where Property valuers talked about cap rate price and No I so the comparison or say the cap capitalization method pretty much looks at the cap rate what is the cap rate for a given area is it % cap rate or even an area with the % cap right.

So you want to find what your cap rate is in your area and figure out what the property is worth based on that pretty much if you’re buying a cash flowing property to go like this what you’re doing is buying an income stream so what you want to do just figure out what’s the no I once you have the no I figured out.

And you know what the cap rate is for a certain area let’s say you’re in an area with a % cap rate then you can find the price how much that property is worth so let’s just go ahead and say that you’ve got a property with an no I of $, your area has a % capitalization rate that’s what properties are selling for so your price will be sorry $, the way that Property valuers got to that number was by taking the No I and dividing it by.

Once again if you need a refresher on how the capitalization of how the cap rate works in relation to No I and price. let’s go ahead and separate these guys okay so property valuation method sales comparison method capitalization method is called replacement cost method so you bet an office building.

Commercial Property Valuers - How to Value a Property?

You’re thinking about buying it if you’re going to use the replacement cost method to figure out how much to pay for this office building you want to find out how much it would cost to build a brand new office building.

Okay how much would it cost to build a brand new office building in a location near the one where you’re buying it on land that is just as desirable or as little house as little desirability as the original office building and also to build it with the same quality of materials.

It’s pretty much imagine all things are the same how much would it cost to build an office building exactly the same as this one that’s how you use the replacement cost method so this one isn’t used a whole lot mainly what you’ll use as a sales comparison and capitalization method.

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