What to Know About Real Estate Valuation

You might think that property value is the same as the price, however, the price and value of a property are not always the same. There are many factors that affect a property’s value and sometimes listing prices do not show the real value of a property. 

There are houses that might be overpriced but there are also properties that are underpriced. If you do not know that value and price are different, you might easily fall into buying an overvalued property. Read this article to know more about real estate valuation and what it means for the buyer.

What is Real Estate Valuation

The value of a property isn’t the same as its price. For example, the actual value of a property is $300,000 but the seller would like to sell it for $350,000. For inexperienced buyers, this might not be an issue as they don’t have an idea of what the actual value is. On the other hand, an experienced buyer or investor can find a way to verify its value and eventually learn that it isn’t fair pricing. They can negotiate with the seller or he/she decides whether he/she will still proceed with the purchase given the current price. 

In some cases, buyers proceed with purchasing these properties due to various reasons. Some investors seal the deal because they see the property’s potential to increase its value.

How does a real estate property get its value? In the next part of this article, we’ll discuss the various factors that influence the property’s value.

house valuation

Factors that influence property value

1. Size

Knowing the value of a property relative to its size is simple. In the same area, a four-bedroom property should be more valuable than a one-bedroom property, and a 500 sqm lot should be more valuable than a 200 sqm lot. It makes sense that a smaller property should not be priced more expensively than properties that have more space.

2. Location

Things are different once you put the location into consideration. Generally, properties in cities like Sydney and Perth are more expensive than properties in outer suburbs. A small studio-unit in the city centre might be worth more than a three-bedroom house in the suburbs because of the demand in the area and because that area is more desirable to live in.

3. Condition

The condition of the house also plays a big factor in its value. However, this can also be a great opportunity for sellers to increase their property’s value in a short amount of time. Renovations, home maintenance, and improvement are the main ways on how to add value to the property. If you are a homebuyer, you must inspect the property for issues such as electrical problems, plumbing issues, roof damage, and more.

4. Supply and Demand

Real Estate value changes with the supply and demand in a specific area. In places where the is a lot of supply or houses that are up for sale but not enough buyers, the value goes down. However, in places where there is not enough property to meet the demand of buyers, the value goes up. Simply put, the property value goes up with demand. 

5. How the property can be used

Commercial properties are valued differently than residential properties. Laws and restriction is also a factor here as if a residential property cannot be turned into a commercial property, its value and desirability can decrease depending on a buyers’ intent.

why is real estate valuation important

Why is Real Estate Valuation Important

Valuation is important because each property is unique. Two houses in one street, even those that look identical, can be very different in terms of condition, interior, and presentation. With these factors and those that are previously mentioned, their value will differ accordingly.

As an investor, real estate valuation will also let you know how much you should reasonably pay for the property, how much you can borrow to purchase the property, how much you can sell the property, and in cases wherein income is the investment goal, it will let you know how much income the property can generate.

Since valuation is a crucial part of the property buying process, it is best to consult experts especially for those who are new to investing or home buying.

Consult the expert

When buying a property, it’s better to ask help from licensed valuers for a more accurate property valuation. In addition, your buyer’s agent can help negotiate with your seller for the right amount. They can both help with assessing if you are getting a house for a lesser amount than its actual value. 

Don’t be fooled by the price tag. You need to make sure that you’re paying out the right amount of money and that you’re getting your money’s worth. 

With the vast experience of the buyer’s agents of Buying Perth Real Estate, they are knowledgeable enough to provide you with the right information of the property you are planning to buy. Contact our experts at 08 6215 0200 or send an email to clive@buyingperthrealestate.com.

Is An Experienced Buyer’s Agent Worth It?

You might think that hiring a buyer’s agent will cost you more, but in reality, buyer’s agents offer many ways where you can save up on costs and fees. Aside from money, buyer’s agents can also save you a lot of time, effort, and stress through handling the buying process.

So, is hiring an experienced buyer’s agent worth it? Read more to find out.

An Experienced Buyer’s Agent is a Buyer’s Advocate

If you think that a real estate agent is on the buyer’s side, you are wrong. A real estate agent is hired by the homeowner to sell their property. They are legally and morally committed to work in the seller’s best interests. They will try to get conditions that are most profitable for the seller and not for the buyer.

Meanwhile, a buyer’s agent is a buyer’s advocate. They will do everything for the best interest of the buyer both in checking the quality of the property and in negotiating the lowest price with special conditions that best suit the buyer. They act as a third party in the final decision and help take away the emotion associated with making the final decision, which can often save making big mistakes or losing your negotiating advantage.

An Experienced Buyer’s Agent Can Lessen Your Time In Looking For The Perfect House

Some buyers take years in looking for a house. Although this is a normal scenario, most people wouldn’t want to spend most of their precious time looking at different houses that eventually don’t meet their requirements. In finding the perfect home, you need to consider a lot of things.

When you have a buyer’s agent, they can do the initial leg work for you. They will find different properties that fit your criteria. Afterward, they will shortlist options based on what they think are the best opportunities for you based on the detailed brief that they have complied after spending quality time in discussion with you at the time you engage their services. This will save you a lot of time and effort that you would need to spend if you were looking for properties by yourself. Your buyer’s agent will do that for you. Moreover, they have more knowledge and will surely be able to find the best properties.

An Experienced Buyer’s agent is knowledgeable especially when it comes to negotiations

With years of vast experience, the right buyer’s agents are sharp negotiators. Aside from providing you with the best property options, they can also provide you with the best deals. They will help you make the right offer that will lead you to finally getting the property at the best buying price.

They can often save you tens of thousands of dollars in the final negotiations for the property you are buying.

buyer's agent house  with key

What Can I Save by Hiring an Experienced Buyer’s Agent?

The buyer’s agents service fee, to you the buyer, is more than covered by:

  • the time and stress you are saved in the searching and checking the properties for due diligence with all the authorities
  • negotiating the best possible price
  • including the necessary special conditions in the contract to protect you
  • arranging building inspections to be done by experienced licensed builders
  • helping where necessary in your search for finance at the best rates
  • plus a host of behind the scene checking and searching and communicating regularly with you throughout the whole process. 

So, is a buyer’s agent worth it? An experienced buyer’s agent or advocate can really offer you good value for their services.

The objective of a buyer’s advocate will always be for the benefit of the buyer. It is good to have a real estate expert that is on your side. They will help you become rational about your decisions. They are knowledgeable, they have access to off-market listings, and they are sharp negotiators. With all these values brought by buyer’s agents, hiring one is definitely worth it. They will save you money, time, and most importantly – relieve you from stress.

Reach out to Buying Perth Real Estate to know more about the benefits of hiring a buyer’s agent.

How To Choose A Buyer’s Agent Who is a Real Expert

Did you know that there are experts and non-experts in the field of property buying services? It doesn’t matter if you’re a property investor or homebuyer, it pays to be aware of who qualifies as a buyer’s agent expert when buying properties.

Qualifications of a Buyer’s Agent

qualifications of buyer's agents who is a real expert

The ideal person in today’s complex property environment should be fully conversant with strategies of real estate selling and buying.

That means they should have experience in working in a real estate selling office before becoming a buyer’s agent. This is vital because anyone can simply undertake a course and obtain a license.

That doesn’t make them an expert in selling real estate – nor an expert in being a buyer’s agent.

A considerable degree of experience and expertise is needed to have the skills and know-how for implementing the best strategic plan for an investor, let alone get a full understanding of the wishes of a home purchaser.

The Real Expert

The principal of Buying Perth Real Estate, Clive Elliott, was a renowned real estate agency principal before entering the field of being a buyer’s agent.

Clive Elliott was one of the leading real estate agents in WA for many decades. In his time of operating Clive Elliott Jennings Real Estate, he sold hundreds of properties from low-cost home units to houses worth millions of dollars.

Many home sellers could testify to Clive’s negotiating skills. It was not unusual for him to come back to his seller with a price above the listing price because he had found several prospective buyers for their property and had simply negotiated the best price possible.

It is highly unlikely that any buyer’s agent in Western Australia has anything like his depth of experience. One thing is for sure if you’re a buyer with his negotiation skills on your side, you have chosen well.

He is a Buyers Agent who is a REAL EXPERT.

Written by Howard Wilkinson past employee of Clive Elliott Jennings Real Estate

Buying Perth Real Estate for Wealth Part Three: Negotiating

In our first blog, we discussed the importance of property investment as an integral part of growing wealth. We also advocated appointing Buying Perth Real Estate as your Buyer’s Agent as a fast track to building a personal property portfolio – a portfolio comprising chosen properties with the most favourable terms and potential.

In our second blog on this topic, we covered was location and selection.

As an experienced Buyers Agents, we are continually reviewing all areas of the real estate market in Perth and regional areas for our clients. This knowledge puts us in the box seat to identify the best areas in Perth for buying property in the current market. 

Your first move when engaging our Real Estate Buyer’s Agent Services is perhaps the most important. It is the initial discussion we have with our clients to establish all of the details. We call this ‘The Brief’.

From there, our action is as follows

  1.  We discuss suitable properties, areas, location, and facilities most important to you, whether it is your home or for an investment.
  2.  We then produce a selection of properties that meet your criteria contained in The Brief.
  3. We receive summaries of the properties showing all the details for you. 
  4. We arrange for a private inspection of the properties on your shortlist.
  5. Once the inspection is complete, and you choose your ideal property, we move to the next step.
  6. Preparing the offer to purchase is crucial – we make sure it covers all of the conditions to protect you throughout the negotiating process from offer and acceptance through to settlement of the property.

Now we move onto negotiating.

Negotiating
Negotiation is an art in itself. So many buyers think that it’s a case of merely coming up with a number to see if the sellers will accept it. Invariably, they don’t, and it leads to disappointment and often the sense of loss. 

In the Perth real estate market – the current climate, in particular – there is often room for an experienced buyer’s agent to negotiate property at a much less a figure than the sellers are asking.

Preparing for the offer
We spend a considerable amount of time with the buyer before even selecting the chosen property. The buyers must have a good understanding of their financial arrangements and have prior finance approval if necessary so that their offer can be a desirable offer not only in terms of price but also the conditions and speed of settlement. 

The quicker the settlement, the more negotiation power we have in securing an attractive price on the property accepted. Even first home buyers in Perth can benefit from making these prior arrangements under our direction. Condition of the property needs to be taken into consideration when making an offer, and any minor or major repairs and maintenance need to be counted as an after cost for the buyer. 

The buyer at this stage must also understand the costs of settlement, including stamp duty, conveyancing costs, and adjustments of service costs for the property. All these are adjusted and paid at settlement.

It is essential to understand the seller’s motivation for selling the property and the plans the sellers have after selling – this often makes a significant difference in how the offer is structured and presented.

As experienced buyer’s agents in Perth, we are not only able to search out the best property available to fit the buyers brief, but also negotiate at the best possible price for the buyer.

In Part Four, we will consider the investor who wants to purchase, renovate and flip. We’ll look at some specific examples. Keep an eye out for this blog.

By reading the signs and using our experience, you can tell when the real estate downturn has ended, and when the upturn begins (or began)!

Don’t delay. Contact us for a free consultation. https://buyingperthrealestate.com/buyers-agent/

The Buying of Perth Real Estate for Wealth, Part Two: Location

In our recent blog, we discussed the importance of property investment as an integral part of growing wealth. 

We also wrote about the potency of appointing Buying Perth Real Estate as your Buyer’s Agent. How it can be a fast track way to building a personal property portfolio; a portfolio comprising of chosen properties with the most favourable terms and potential.

Location, Location, Location

Some properties make better investments than others.

The goal for any buyer should be to get the right price for the right property, not just the lowest price on any property.

To achieve this goal, an accurate assessment of the market value and the rental potential, together with a valued opinion of the location are just a few of the ways a Buyers Agent works in Perth.     

Whether you’re a first home buyer in the Perth area or a seasoned investor if buying real estate in Perth, it requires the attention to areas such as rentals and sales activity.

Whether you are a first home buyer or downsizing or upsizing in the Perth real estate market, it becomes increasingly important to use an experienced buyers agent in Perth.

Location and selection.

As experienced Buyers Agents, we are continually reviewing all areas of the real estate market in Perth and regional areas for our clients. We see the areas where the best property buying in all of Perth are located.

Because of our coveted relationship with so many real estate agents, we find that up to 30% of properties sold aren’t even advertised to the public.

“Why? you may say.” There are plenty of reasons.

Some sellers require a quick sale; others don’t want the expense and inconvenience of going through a lengthy auction process, others  wish to protect their privacy and don’t want weeks of having home opens.

Agents look forward to hearing from Buying Perth Real Estate as they know us as the experienced buyer’s agent in Perth.

They know our clients are genuine buyers and have their finance arrangements organised well in advance to enable a quick and trouble-free sales process.

The agent works and is paid by the seller and they are their top priority while we as a buyers agent work exclusively for the buyer.

we receive no payment from the agent, this way there is no conflict of interest  

Buyers Agents/ Buyers Advocate Fees

Without exception, our clients report that the dollars we save them from our years of experience in negotiating real estate contracts, save them the cost to use our services – sometimes many times over.

Next, we will go through the negotiation process and how it works in your favour. Look out for this blog.

By reading the signs and using our experience, you can tell when the real estate downturn has ended, and when the upturn begins (or began)!

Don’t delay. Contact us for a free consultation. https://buyingperthrealestate.com/buyers-agent/