When was a property valuation last completed for your home? If you live in a major city like Sydney or Melbourne, the answer may be “not recently enough.” Due to changes in interest rates and smaller loans being approved by banks, housing prices in these areas are falling rapidly. Some experts suggest they may fall as much as 20 per cent over the rest of the year. If you need to know the definitive value of your home, it may be time to arrange a property valuation in Sydney.
Shane Oliver, the AMP Chief Economist, had originally expected to see a drop of around 15 per cent in housing values over the course of the year. Banks, however, are making smaller loans to home buyers and are offering higher interest rates. This means that buyers will have less money to spend, and home prices across major cities will decrease.
In many situations, this would be a sign of a serious economic downturn and cause great consternation amongst experts. Chris Richardson, a partner at Deloitte Access Economics, felt that the value changes were not something to be worried about. He said that housing prices in cities like Melbourne and Sydney had “streaked past anything sensible,” and suggested that the significant drop in prices was likely to bring the housing market in these areas more into line with reasonable values.
If you need to know the definitive value of your home, you will need to get a valuation. This is different than an appraisal; an appraisal is conducted by real estate agents and other similarly trained professionals. It generally takes into account your home’s location and current market forces. A valuation is much more detailed, and is conducted by those with a higher level of experience and training.
For example, a valuation will consider:
- The condition of the building and property
- Any encumbrances or other caveats on the property itself
- Local council zoning
As well as other important factors. This valuer will provide the homeowner with a detailed report explaining the property’s definitive value.
Understanding your home’s definitive value is important when you’re purchasing insurance for your home, determining appropriate taxes to be paid on the property, estate planning, or when you are preparing to buy or sell a home. Knowing a property’s real value can help you show a buyer that you’re basing the selling price on more than local trends, and can help sellers make fair offers on the home.
Whenever there are big fluctuations in local home pricing, it’s a good idea to complete a property valuation in Sydney. If your property is valued higher than appropriate, you may pay too much in taxes and insurance premiums, and these costs can add up quickly. You may also need a valuation to help settle a dispute. When you are looking for a property valuation in Sydney, make sure to contact McSS Property Valuations. Our significant experience in this area means that we understand local property needs and can ensure that your home is properly valued. Contact us today to learn more about the process and get started.