Property valuation is the process of estimating the value of a property. It is used for a variety of purposes, such as buying, selling, or lending money against a property.
In Australian English, property valuation is often referred to as appraisal. An appraisal is a formal document that sets out the value of a property. It is prepared by a qualified valuer, who uses their knowledge and experience to estimate the value of the property.
There are a number of different methods that can be used to value a property. Some of the most common methods include:
- Comparative market analysis: This method compares the property to similar properties that have recently sold.
- Income approach: This method estimates the value of the property based on the income that it generates.
- Cost approach: This method estimates the value of the property based on the cost of replacing it.
The value of a property can vary depending on a number of factors, such as the location of the property, the size of the property, the condition of the property, and the demand for properties in the area.
Here are some examples of property valuation in Australian English:
- A property developer might commission a property valuation to determine the value of a block of land before they start development.
- A bank might require a property valuation before they lend money against a property.
- A homebuyer might commission a property valuation to determine the value of a property they are considering buying.
Property valuation is an important part of property research. It can help investors to make informed decisions about their investments and to protect themselves from overpaying for a property.