Professionals Real Estate 
When thinking about putting your property up for sale you naturally want to get the top amount for it. You may be contemplating on taking some actions that would increase its value. This is often done, but the problem lies in choosing the wrong valuations that either adds no true value or could even reduce its valuation.
Should you install a swimming pool?
The answer to these questions depends on whether the likely buyers of your property are willing to pay extra for this water feature. It will depend on the area in which the property is situated in. In prestige or family orientated neighbourhoods a pool could be a selling feature. Property located in the hub of the city may not fare well with the offering of a pool, or those properties that are situated on the coast. It is important to know the wants and needs of your potential buyer’s market.
Knowing how the bank values you your property
It is normal for banks to place a lower value on property. Those responsible for determining the value of the property should remain unbiased and should not lean towards pleasing any parties involved. The valuation report must be accurate and follow the criteria for setting a factual evaluation.
What to expect from a value
Valuers don’t spend a lot of time at your premises. They will rely on their own professional resources to assist them with the valuation, and will conduct in-depth research into what is happening with the market in your area. Upon arrival at your home they will know exactly what they are looking for and complete their task within a half hour normally.
Do extra bedrooms increase the value?
A lot of home owners believe that the more bedrooms the home has the better the value is. This was true in years past when families were larger. Now property buyers want space for a home office, or home theatre and storage space is important. A trend now is to convert above garage space into getaway retreats for the family teens. The amount of floor space may be the better value indicator as well as location and curb appeal.
Presentation and valuation doesn’t match
Everyone has their own perception when it comes to the design of the interior of a home. It is a mistake for the present home owner to enhance the décor of the home according to their liking assuming that potential buyers will be impressed by it. Buying exotic furniture to make the home look more appealing does nothing in respect to adding value to the home.
The fallacy in thinking property value doesn’t drop
In Australia there can be property booms that are short lived, which at their end can see property prices reducing.
What is happening in the economy both within the country and globally can have a dramatic impact on property value.
Don’t view commercial property in the same light as residential property
Often commercial property that is well located with a long term lease and caps on rent increase appear to be a solid investment. They might not be easily affected when the market drops. The stability comes from the long term lease at this time.
For those in the residential development business they may opt to offer a risk free investment. If there is a large supply of development units locally then there is a risk of the market being saturated.
Commercial and residential properties have to be viewed as separate entities.
Sale price and market value are not one and the same
Market value is an evaluation of the property that would fit in with what is happening in the market place. The sale price is the amount received for the actual sale. A property could have a market value of $300,000. But be sold for $250,000. Mitigating factors could have played a role in the amount differences. The seller may have wanted to sell quickly, which enticed them to sell below market value.
Should capital growth be the focus of investors?
It is important to consider capital growth, but potential rental income should always be a consideration. Rental income provides instant cash flow that can be put towards paying down the mortgage or other viable investments.
Is interstate buying the best way to diversify?
Some factors can be reduced with interstate buying but all properties are vulnerable to the state of the economy.
