Property valuation is not just an estimate but a structured process based on data, market trends, and expert assessments. Property valuers use various methodologies to determine the most accurate market value of a property.
Key Methods Used by Property Valuers
Direct Comparison Method
This is the most common approach where valuers:
- Compare recent sales of similar properties
- Adjust for differences in size, condition, and location
Cost Approach Method
- Determines how much it would cost to rebuild the property from scratch
- Includes construction costs, depreciation, and land value
Income Capitalisation Approach
Used for commercial properties where:
- The rental income is assessed
- Future earning potential determines property value
Factors That Influence Market Value
- Property Location – Proximity to schools, transport, and amenities
- Market Demand – High demand leads to higher valuations
- Property Features – Renovations and modern amenities add value
How to Ensure an Accurate Property Valuation
- Maintain detailed property records
- Keep the property well-presented before an inspection
- Work with a certified and experienced property valuer
Conclusion
Property valuers follow strict industry guidelines to determine market value. Their expertise and methodology ensure accurate and reliable property assessments for buyers, sellers, investors, and legal professionals.