The process of conducting a property valuation has always been more art than science. This is especially true in today's fluctuant property market; at this time it is harder to arrive at a solid figure than ever before. The reasons behind this are diverse but put simply, the causes of the 'credit crunch' that have had major implications on the property market are predominantly down to the over spending of American loaning companies. With too many payments defaulted, it is now the case that mortgage lenders are less likely to lend and subsequently, less properties are being sold. Despite this people are still putting their properties on the market and the valuation process is essential in doing this.
This situation can however have detrimental effects any valuation given. Many unscrupulous operators out there hold the belief that as valuations will vary so greatly, it is now time to give purposely inaccurate valuations. This is not however the whole property industry; there are still ethical operators out there that do not want to hoodwink people on their quest for profit. These kinds of operators do their best to draw on the experience and knowledge to come up with a valuation that is as realistic as possible.
The hardest task for estate agents at the moment when making a property valuation is to exactly determine the current state of the market. This problem has a twofold effect on the valuation process. The first of these is that agents will find it hard to arrive at a figure when they have no idea what the state of the market will be in the coming weeks. Secondly, as the property market is constantly shifting, the task of finding solid comparisons for any particular property is also difficult. Subsequently these two factors make arriving at a figure difficult.
Good agents will make their clients aware of these limitations from the outset, informing them that any valuation figure will be subject to change. The risk of pricing a property too highly or lowly is a constant worry. For instance a house or flat that has been valued one week, may find itself, amid a property market in downfall seriously overpriced a week later. Hence the residence may be overpriced and less likely to sell. Additionally, if an agent tries to accommodate for falling prices in their valuation and the price drops do not occur, the residence will be under priced, losing the client and the agent money.
As a homeowner the best way to find the value of your home is to utilise as many resources as possible. Not only should you recruit a number of agencies from the outset but with the use of online valuing tools it is possible to find a more accurate figure. Online tools use data from a wide ranging database giving information on more properties than an agent can draw upon. Subsequently the accuracy will be increased. Be careful however, even these online valuing tools are not one hundred percent accurate as there is normally a delay with the data; they are still susceptible to the volatilities of the property market.
Valuing a residence has never been an easy process, in times where the market is in flux the task is made that much more difficult. As long as you can utilise a wide base of resources you should be able to find an accurate figure. Remember however that a property is worth only what the buyer is willing to pay for it; with the current sway towards the buyer in today's market, this truism holds more water than ever before.
Real estate expert Thomas Pretty looks into the difficulties involved when making an accurate property valuation.