Have you ever wondered who decides how much a property cost? Why can't we buy a property, spruce it up real nice and sell them off at high profit?
The answer is property valuation. There are different ways of getting your property valued, however. What are some of the important things you need to know about property valuations in Singapore? And how do you check the value of your property?
1. GET A FEW VALUATION REPORTS AS THEY CAN GIVE DIFFERENT ESTIMATES
So I'm sure that you think that the value of your property is high, but others may not think so. Even banks can give different property valuation reports. If you want an accurate indication of your property's value, you should seek at least 3 different quotes to see what's the average.
2. RATHER THAN INDICATIVE BANK VALUATIONS, OBTAIN 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.
For another option, you can also get a full valuation report from SRX property valuation, which are prepared by professional licensed appraisers.
3. EVERY LITTLE DETAIL COUNTS IN PROPERTY VALUATION
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.
As can be expected, the value of a house will change depending on changes in infrastructure, such as a new MRT line, or a new shopping mall.
4. MAINTENANCE MATTERS, SO FIX OR REPAIR ANYTHING BEFORE VALUATION
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.
5. PAST TRANSACTION PRICES CAN BE A GOOD GAUGE TO PROPERTY VALUE
To check your HDB or private property's valuation, you can use e-services such as URA's Private Residential Property Transactions e-service and HDB's Resale Flat Prices e-service.
URA's service helps you check any private property transactions within the past 3 years, filtering down to project name or district.
The HDB resale flat prices portal lets you check resale flat transactions within the past 2 years.
Combined with valuations by licensed appraisers, past transactions should give you a good indication as to how much your property is worth.
Know someone who's looking to buy/sell their home? Be a good friend and share this with them! Good things must share!
This article was first published in MoneySmart.SG.