Navigating the path of property investment can be as exciting as it is complex, but having an understanding of ‘value’ is one sure-fire way of getting off to the right start.
Property valuation is the process of developing an opinion of value for a property. In short, figuring out a house’s true valuation can help you discover exactly how much you need to borrow in order to pay it off.
This is extremely important to know as a first time buyer and we will explain why that’s the case below.
Understanding property valuation as a first time buyer
If you are looking to get on the property ladder, conducting a property valuation is an essential step in the process. As a first time buyer you may not be privy to the inner workings of the house buying market, so getting all the variables in order beforehand will help massively.
Here’s what you need to know:
Why do I need a property valuation?
In general, people will look at getting a property valuation before making an offer on a house or when applying for a loan – an essential part of the application process.
If you’re looking to obtain a mortgage a bank will require a valuation to ensure the security value of a property covers the loan. If something goes wrong and the mortgage cannot be paid, the bank needs to be confident that you can afford it and that they can recover any outstanding amounts.
How do valuers come up with a figure?
In order for a valuer to effectively do their job, they need to inspect the property first hand and note down important factors such as:
- Wear and tear
- Structural improvements
- Room layout
- Electrics / heating
- Extras (e.g. double glazing)
- Storage space
They may also choose to take notes on things such as vehicle access, location and appeal to generate a more rounded figure.
Get a FREE property valuation with Pearson Ferrier
At Pearson Ferrier we ensure that everyone gets a fair deal when buying a home. If you’re considering putting an offer on a house, let our experts help out by taking advantage of our FREE property valuation.
Our professional surveyors can give you a detailed inspection to ensure that you are aware of all the factors before buying. Every room, structure and potential improvements will be taken into consideration – both inside and out – to provide a true and accurate valuation of the property.
We have a fantastic selection of properties located all throughout the UK, including areas such as Bury, Ramsbottom, Ashton-under-Lyne and more.
If you’re looking for the best advice when buying a home, get in touch with us today on 0161 763 3666 and let us help you.