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Listing the top 10 reasons to get a property valuation

When to Get a Property Valuation

Knowing the true market value of your property is useful in many situations. Here are the most common reasons homeowners require an appraisal from a professional property valuer.

Buying a Property

Getting a valuation before purchasing a property gives buyers confidence they are paying a fair price. The appraisal benchmarks the asking price against recent sales of comparable homes in the area. This evidence-based valuation from an independent expert negotiates against overpaying.

Sellers also often require a valuation to set a listing price that accurately reflects current market demand. Appraisals maximise sales potential.

Selling a Property

Vendors need a valuation to determine a competitive asking price when putting their property on the market. Pricing too high means losing buyers. Too low leaves money on the table. Valuations find the sales sweet spot.

For properties in high demand, multiple offers above valuation are common. But even then, the appraisal provides a sensible reserve price for negotiation.

Refinancing Your Mortgage

When refinancing to access equity or get a better interest rate, lenders require a valuation to confirm the property value still sufficiently collateralizes the new loan. Appraisals give lenders confidence in maintaining prudent loan-to-value ratios.

Tax Purposes

The tax office may use valuations to determine property taxes or levies. Valuations also establish the cost basis for capital gains tax calculations when selling. Keeping valuations current provides evidence if disputing an assessment.

Insurance Claims

Insurers need loss valuations after an incident to assess rebuilding or repair costs for settling claims. Valuations justify your estimate if negotiations are required.

Divorce Settlements

Dividing assets equitably in a divorce settlement relies on impartial valuations of any jointly owned real estate like the marital home. This sets buyout amounts and proportional divisions.

Estate Planning and Probate

Executors use property valuations to establish values for wills and estate planning purposes. Valuations also help determine equitable distributions between heirs and estate tax liabilities.

Financial Reporting

Businesses get regular valuations of commercial real estate assets for balance sheet reporting and determining depreciation. Lenders may also require valuations before extending commercial credit lines.

In summary, impartial third-party valuations protect your financial interests whenever key decisions involving your property assets need to be made.