How does a property valuation work?

Valuing your property is an important step before selling or if you want to get an idea of its market value. Here, we go through the process step by step and what you can do to influence the value.

1. Why do a property valuation?

A property valuation can be useful in several situations:

Before a sale to set the right starting price.
During negotiations for a new mortgage or interest rate adjustments.
In cases of divorce, inheritance division, or other legal situations where the property's value needs to be determined.

2. What does an agent look at during a valuation?

The agent considers several factors during a valuation:

Location – proximity to transportation, schools, and amenities.
Size and layout – number of rooms, square meters, and functionality of the property.
Condition of the property – completed renovations, surface finishes, and any deficiencies.
Association's economy (for condominiums) – monthly fees and debt. Market conditions – current supply, demand, and interest rates.
Market conditions – current supply, demand, and interest rate levels.

3. How the valuation is carried out

The agent takes several factors into account during a valuation:

Valuation booking – Contact an agent to schedule a free valuation.
Agent visit – The agent inspects the property and assesses its condition and potential.
Market analysis – The property is compared with similar ones in the area.
Opinion – You receive a valuation with a professional assessment of the property's market value.

4. How often should you do a valuation?

Before a sale – Do a valuation a few months ahead to prepare the property.
For mortgage negotiations – An updated valuation can give you better loan terms.
Generally – It may be helpful to get a new valuation every two to three years to track the property’s development.

5. Can you influence the value yourself?

Yes! Small improvements can have a significant impact on the property’s value:

Renovate the kitchen and bathroom – often the most effective way to increase value.
Refresh the surfaces with painting and floor sanding.
Create an inviting atmosphere with home staging and furniture arrangement.

Summary

A property valuation is an important part of the property transaction and can provide valuable information both before a sale and for other financial decisions.

Want to know what your property is worth? Contact us at Notar for a free valuation today!