How to value your investment property

Understanding how much your investment property is worth can help you make informed decisions

A tiled pool area in the backyard of an investment property

How much is my investment property worth?

Property valuations are part of the buying process. Find out about the different valuation types, what’s involved and how to prepare for one.

What is a property valuation?

A valuation is a detailed report of a property’s market value. Your lender will request for a property valuation to confirm your property’s value is sufficient to support your loan.

You need one when you buy a home or refinance for a renovation. You also need one if you want to release equity in your property or decide to sell.

A property valuation acts as a safety net for your lender. It ensures they don’t lend you more than your property’s worth. It can also give you an indication of the value of the asset you own or are about to buy.

Types of property valuations

Some common methods of valuations include:

  • Automated valuation model (AVM): a computer-generated estimate of your property’s value
  • Desktop valuations: the valuer assesses the property from their desk using online property data. This is a quick way to estimate your property’s market price. But a desktop valuation may not be detailed enough for lenders to make a decision on your loan application
  • Kerbside valuation: the valuer only analyses the property externally
  • Full valuation: the valuer inspects the property internally and externally.

What does a valuer look for?

Valuers consider a range of factors including:

  • Location of the property, planning restrictions and local council zoning
  • Size of the property including number of rooms
  • Fixtures and fittings
  • Building structure and condition
  • Presentation and fit-out
  • Vehicle access and garage
  • Recent local sales and other market conditions.

How often should you get your property valued?

You can get price estimates on your property as often as you want.

Online reports and apps can give you a quick idea on what your property is worth. Your Aussie Broker can also provide you with a free property market report.

Another option is an appraisal from a real estate agent. You may need to do this if you’re thinking of selling in the near future and want a price guide to decide whether to sell or hold .

You may need to do a full valuation when you need a new home loan or want to change your existing loan. Your home loan lender may also request a valuation if you’re refinancing your investment loan to release equity.

Book a free appointment with an Aussie Broker today and get access to a free RP Data Property Report.

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