In a perfect world, I'd be buying homes for a dollar and selling them off at a million each. But hey, this isn't the land of make believe.
We have property valuations to prevent people from overpricing their homes, and to prevent us from becoming the schmucks that buy those.
Here's 4 things you didn't know about property valuations (or at least, I didn't):
1. ONE IS NOT ENOUGH
Sometimes, different valuation reports can give different estimates. Especially when it comes to indicative bank valuations.
And if you want to ensure an accurate indication of the property's value, you should seek at least 3 different quotes to see its average range. Which brings us to our next point…
2. INDICATIVE BANK VALUATIONS ARE NOT ON PAR WITH PROPER REPORTS FROM LICENSED APPRAISERS
In fact, you should never rely solely on bank valuations as a guide for your property's market value.
Different banks can come up with vastly different valuation estimates and this indicates that a part of the process involves guesswork rather than clear evaluation guidelines.
For private properties, it's best you find someone from the Singapore Institute of Surveyors and Valuers (SISV).
Or if the property's from HDB, you can just get your valuation report from their own panel of valuers - they are all professionally licensed by IRAS.
3. EVERY. LITTLE. DETAIL. COUNTS.
Besides the obvious factors that go into accessing a property's value, such as the location (convenience, zoning) and size of the property, every little detail counts.
Some factors include whether you're living in an apartment, the structure of the building (number of levels it has), the orientation and location of your unit in the block (point blocks increase valuation), interior furnishings, and the state of them.
Which brings me to the last point.
4. YOUR MAINTENANCE MATTERS TOO.
Gradings are actually given to the state of repair and/or maintenance of your house.
This includes the building's state of repair, and also, the condition of the interiors of the house.
Meaning, if fixtures such as the walls and floorings of your house aren't well-kept to an acceptable state, it will affect the valuation outcome of the property.
Know someone who's looking to buy/sell their home? Be a good friend and share this with them! Good things must share!