Why And How A Property Valuation Is Produced

by : Thomas Pretty

A property valuation can be one of the most emotive issues in life; after all, it is your home and it is usually the case that you will become attached to the house or flat. For those who would like to remortgage it is vital to get an independent valuation of your property. Many will find this valuation a stark eye-opener to the true value of their home, and in some cases, a bit of a let down. With the current market conditions, qualified valuers having been extremely lean with their valuations all over the country. Naturally this will have an effect on remortgagers, sellers and buyers.

There has recently been an evident shift in the market and there is little doubt that your property valuation will reflect this shift. Whereas over the last few years in the UK it has been a sellers' market, currently we are going through a phase where buyers are dominant. This is simply due to the fact that supply has outweighed demand in terms of properties on the market. As a result of the large number of properties on the market your valuation will be lower; effectively, a buyer will be paying less as there are more options open to them.

The situation has not gone into complete freefall however; your valuation should still be a considerable amount. The general trend of first time buyers having difficulty climbing upon the property ladder is continuing but at least changing. The situation is becoming easier for first time buyers as the numbers of those who are buying their first homes has increased in recent years. This trend will hopefully increase, as if a lack of first time buyers continues, the property market will stagnate and hence the valuation of your home will become less.

If you are thinking of remortgaging your home it is essential to have a valuation performed by a qualified surveyor, unfortunately estate agent's valuations hold no sway with mortgage companies. Sadly for those in this position the current downturn in the property market will affect them greatly. These adverse affects will be felt as they attempt to free some of the equity from their property and will find that the amount they receive will be considerably less than say, five years ago. Although a valuation should not change, in this instance it is advisable to get a number of valuations as it will increase your chances of being able to free more equity, at a better price.

The valuation will be based upon a number of factors in order to take an all-encompassing approach. First and foremost is the current market conditions and how properties are selling in general, whether any are not making their asking price, or at least getting close to their asking price is involved in this consideration. Secondly a surveyor will take a look at your home to find any issues that may affect the eventual price; subsidence at this stage can create a major dent in your eventual valuation. As well as these factors, your surveyor must also consider how other similar properties are selling in the area; this kind of local knowledge added to a large amount of guesswork will eventually lead to the valuation of your property.

Do not however be shocked with the eventual valuation figure; many people overestimate the value of their home due to emotional attachment and sentimentality. Remember your surveyor is basing their figure objectively in line with current market conditions. Whatever your reasons for a survey, selling, buying or remortgaging it is a vital element in the property world, make sure you do not miss out this essential constituent.