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  • Edward Wong

3 Situations That Call for a Residential Property Valuation - Our Guide

Most homeowners are aware that residential property valuations are essential when the time comes to sell. However, there are other situations that warrant professional property valuation. You may not be looking to sell your property yet, but getting your property evaluated will help you gain important information about your property. After all, a property valuation can be helpful to know the actual worth of your principal asset.


There are a few situations that call for your Sydney property to undergo a home valuation carried out by a registered valuer. Here are three of them:


When You’re Planning for a Renovation


When you’re considering a renovation project for your home—such as adding a new pool or updating your interior—a property valuation becomes imperative. Residential property renovations can get pricey and it is essential to keep an eye over the budget so that you don’t overcapitalise. For instance, it wouldn’t be a wise decision to add a modern swimming pool to a residential property with low resale value. It’s smart to get your property valued by a registered property valuer to get a better idea of the estate’s worth.


When You’re Buying a Second Property for Investment


If you want to buy a second property just for investment purposes, you have the option of having your equity in your primary residence act as the collateral for the purchase. Generally, banks will lend approximately eighty per cent of the purchase price of an investment property when you use your primary residence as collateral. An investment property valuation will let you know how much equity you possess in your primary residence. Accordingly, this will help you determine how much financing you will be able to acquire for your investment property.


When You’re Refinancing Your Primary Loan


If you’re still paying a mortgage on your primary home and your original loan term is ending or you’re looking to switch products or lenders, a property valuation becomes crucial. Depending on the lender and your own preference, a property valuation can be performed either through a registered property valuer of your lender’s choice or a third party. You may want to switch to a loan product that provides a lower rate of interest. Doing so can potentially result in significant savings. In fact, you may be able to change to an interest-only product for a principal and interest arrangement. If your property valuation suggests that your LTV (Loan-To-Value) is at least eighty per cent, you will be in a better position to discuss the terms.


Over the past decades, the real estate market has seen a firm growth. This means that, in all likelihood, your home may have accumulated value. In case, your home hasn’t accrued value, once you know your home property’s value, you’re in a better position to make financial decisions moving forward. In addition, a home valuation will facilitate you to make a will that hands-out your property as per your wishes.


Depending on the purpose of getting the estimate, you can opt to have an informal or formal property valuation. If you just want an estimate to know your property’s net worth or find out whether selling would benefit you financially, a real estate agent can normally provide you with decent approximation about your home property’s value on the open market. If financial institutions need to perform a mortgage or refinance, they will organise valuations. For the most accurate estimate, however, turn to an independent registered property valuer.


If you are looking for a registered property valuer in Sydney, get in touch with us today to see how we can help.

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