If your property valuation seems outdated or doesn’t align with your goals, it may be time to get a fresh appraisal. Here are 15 tell-tale signs that indicate you should update your home or commercial property’s valuation:
1. It’s Been Over 12 Months
Market conditions can change rapidly, so valuations over a year old are generally considered stale. Aim to update your valuation annually to keep pace with shifts in local property values.
2. You’ve Made Major Improvements
Adding an extension, pool, granny flat or other major renovations will impact your property’s value. A new valuation is needed to fully capture these upgrades.
3. The Local Market Has Boomed
In hot markets, values can rise quickly in a short period. If sale prices have skyrocketed locally, your old valuation amount is likely lagging behind the new market reality.
4. You’re Refinancing or Equity Release
Lenders will require a current valuation when you refinance or access equity, as the loan amount needs to be supported by a valid market value.
5. You’re Selling Soon
An up-to-date valuation gives you an accurate reserve price when selling. Stale valuations risk underselling and losing money.
6. You Need to Settle an Estate
For estates and divorces, a fresh valuation ensures assets like properties are divided fairly according to current values.
7. Your Needs Have Changed
If you now want to subdivide, develop, or change the property’s use, you’ll need a new valuation based on its highest and best use case.
8. The Neighbourhood Has Deteriorated
Local economic decline, untreated blight or increasing crime can negatively impact surrounding values. A new valuation will reflect the area’s issues.
9. A Natural Disaster Occurred
Fires, floods and storms can cause substantial damage, requiring revised rebuilding cost estimates and valuations for insurance claims.
10. New Zoning or Development is Coming
Upcoming nearby infrastructure and development plans will influence value. Capitalise on this by getting a valuation before public announcements.
11. You Suspect an Error
If you have evidence suggesting your existing valuation contains mistakes or faulty reasoning, a new appraisal provides a second opinion.
12. You Need Backup for Legal Issues
Valuations substantiate positions in disputes or lawsuits. Obtain an unbiased valuation even if you already have one to bolster your case.
13. It’s an Inherited or Old Report
Outdated valuations provided by sellers or inherited from relatives likely don’t represent what your property would achieve today. Verify its current value.
14. You Obtained It From an Unqualified Source
Get a qualified valuer’s opinion to override questionable appraisals like automated estimates or free online tools.
15. You Simply Need Reassurance
When in doubt, an up-to-date valuation from an independent professional will give you confidence and peace of mind about your property’s value.
As markets and circumstances change, so too should your property valuation. Follow these tips to recognize when it’s time to get a new appraisal.