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Everything you need to know about property valuations

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A property valuation is a projected value of a property in the current market. It may be a single figure, but it’s more likely to be a range between a lower and higher figure.

The property valuation is provided by inspecting the property and by using recent market data, such as sale prices of similar properties in the area and current demand. Learn the important details here.

How different parties value a property

A property valuation could be carried out by an estate agent, property surveyor or even your mortgage lender. Although all three parties could carry out a property valuation on your home, they may do things differently and for different purposes.

An estate agent can carry out in-person or remote property valuations to help homeowners understand the value of their home in the current market. It’s important to use local estate agents like us, who are aware of local trends to get the most accurate property valuation. We value properties to help sellers decide whether to sell or to know how much to list their property when taking it to market. Our valuation is essentially an estimate of the price your home should sell for.

Mortgage companies might carry out remote property valuations using sophisticated technologies, or they will employ a surveyor to carry out a detailed on-site valuation. They do this before agreeing to a mortgage so they know that lending to you is safe. The valuation has to be backed up with prices of recent sales which can cause issues in a rising market, therefore it's important your estate agent can communicate intelligently with the valuer to help.

If you were to overpay for a property, the mortgage company might not be willing to approve your mortgage as they wouldn’t easily recover the debt if you failed to make mortgage repayments. A mortgage company may also carry out a property valuation if you wanted to remortgage or get a further advance on your current mortgage. This is done to ensure you have enough home equity to secure the additional borrowing.

What makes a good property valuation?

The overarching aim of most property valuations is to understand what buyers are likely to pay to buy the property. Therefore, a good property valuation ensures the most accurate estimate is provided, which can only be achieved by using:

  1. A professional who knows the local property market
  2. A professional who is aware of real-time changes and demands
  3. A professional who visits your site and checks reliable data

Why is an accurate property valuation important?

An accurate property valuation is essential if you’re planning on selling your home. The property valuation will inform your decision to sell or not, and it will set realistic expectations. It may even inform your budget for a further property purchase.

If you don’t get an accurate valuation, you could end up disappointed when you start receiving offers. Or worse, it could cause you to list a property for sale which you now don’t want to sell.

Property valuations with Hearnes

Hearnes can value your property If you’re thinking about or planning to sell property in Bournemouth, Ferndown, Poole, Ringwood, Wimborne or surrounding areas.

Through local expertise and attention to detail, we offer confidential property valuations without an obligation to sell through us. Contact us now for more information.

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