Benefits of Property Valuation in Australia

It is very obvious that seller of the property would like to get high price and buyer would like to pay low. Often both these parties arrive at negotiating table with varying ideas on price. One of the benefits of a property valuation is that buyer and seller can find a common ground and can initiate and streamline negotiation process. End of the process is the worth what the buyer is willing to pay. Property valuation depends on various factors like condition of property, upgrades, current market conditions, circumstances of sale, & individual tastes. Correct pricing is the key to successful sale for the property owner. While under-pricing enables fast sale it carries risk of getting lesser value of property to the owner. Higher price lingers on sale of property and statistically the value erodes at a rate of approx. 1.5 per cent a month; and as times leads to distressed sale due to seller’s frustration. Benefits of a property valuation are that it leads the buyer to avoid making emotional purchase that would otherwise end up with overpayment for the property.

Automated Valuation Model is a scientific method of evaluation of property that uses advanced statistical models and proprietary algorithms and formulas to arrive at best comparable properties available. Besides property characteristics comparable sales and active listings are researched. Other benefits of a property valuation are that the seller knows its own property and neighborhood better than anyone and can adjust base value in accordance with characteristics of the individual property; similarly buyer can also make similar adjustments when it visits properties and formulate an asking price. An upward adjustment is appropriate if active price listings are priced higher than your base estimated value; and downward adjustment is in order is prices are lower.