Property valuation report: What should be included in a comprehensive and convincing report?

Are you a real estate agent looking for new listings? Or are you on a help-to-buy mission and need to create a homebuyers report? Are you maybe even a valuer of freehold or leasehold? Or do you work for one of the bigger mortgage lenders companies that need to set up a remortgaging/mortgage valuation or buy valuation? In any case: Be sure not to leave out anything that really should be in your property valuation report.

What is a property valuation report?

A property valuation report is put together using the work and calculations of real estate experts and agencies. It contains detailed information about a specific property. A comprehensive valuation report of a property that packs a punch will make all the difference: it can be the key piece in the jigsaw when it comes to convincing your prospective sellers to trust you with their property. In this article, we will take a look at the many factors that need to be taken into account.

The basics of a real estate valuation survey

From a technical standpoint, a market valuation of property is, in fact, the future profit value at a specific point in time and accrues with owning the property. Unlike other consumer goods which become quickly outdated, the profits of real estate are typically measured over a long period of time.

This is why not only the property itself, but many contextual factors, need to be taken into account when drawing up a property valuation report.

The main criteria for a real estate valuation report

A property valuation report will take into account three general factors: the property itself, with its tangible features; the area, with its strengths and weaknesses connected to daily life; and lastly, the dynamics of the real estate market.

1. The property’s features

These are specific criteria, ranging from the tangible quality of the building materials to the ambiance of the property and the comfort of living there.

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2. Features connected to the environment in which the property is located

The property’s geographical location is a key part of a residential property valuation report. To get a clear idea of the quality of life and potential offered by a local area, you must take into account assets relating particularly to infrastructure and schooling. While new infrastructure will undeniably impact property prices, what other factors can justify variations in the estimated property value between neighbouring areas?

Public transport can increase the land development prospects of properties located near major infrastructure, thereby increasing the market value of a property. This “transport bonus” can create a real increase in value. This price difference will largely depend on the areas served as well as on the economic health of the region.

In order to measure the potential of a neighbourhood, and therefore of a property, it is important to look at recent or upcoming real estate and commercial projects. What permits have recently been filed and approved in the area? What work has recently been completed?

Data from residential or commercial construction projects have a considerable impact on a neighbourhood’s dynamics. They can boost or lower the value of an area studied by showing, for example, its density levels.

Whereas the development of new shops or business districts, new infrastructure, or new housing projects can all add value, the construction of buildings, potentially causing landscape and views to change, can lead to the reduction of a property’s value. All of these elements enable an agent, and especially the client, to take a more long-term view of proceedings.

3. The health of the property market in the area

The health of the area in which the property is located is a fundamental indicator. Indeed, it can provide valuable information about the state of the surrounding real estate market, from its precise rating to its overall dynamics.

Showcase your local knowledge with a comprehensive, accurate property valuation report

Having an accurate and detailed report has genuine advantages for real estate professionals:

Transparency will convince prospective sellers far more easily

To convince your seller leads of both your in-depth knowledge of the market and your ability to sell their property at the right price and within the shortest possible time frame, there is nothing like a reliable, comprehensive and accurate property valuation report. We can’t say it enough: highlighting your expertise is THE number one tool for boosting your volume of business and, ultimately, your turnover.

Use it to set (and justify) the right selling price

If the selling price is too high, no one will buy. If the selling price is too low, the seller will lose money. How do you strike the right balance? And above all, how do you convince the customer that this is the best price?

It's very simple: use reliable tools when putting together your property valuation report. Get the exact value of the property, and use it to devise a sales strategy in collaboration with the seller and in accordance with the criteria, strengths and weaknesses of the property and with the seller’s objective.

For example: Does he/she want to make a quick sale? Does he/she wish to sell at a high price? Depending on the priorities, you can provide your client with information on the average time a similar property is on the market before being sold. You can also give your client information on the “right” selling time, as well as the point when the property will get “burned” on the market.

Property Advisor: A major asset for any real estate professional

Property Advisor, our digital real estate analysis and property valuation software solution, takes into account all of the data points needed for a full and accurate valuation of the property, and relies on big data and AI to assign them weightings. You can create really accurate property valuation reports and gain visibility on future market dynamics, all in just a few clicks. These fully comprehensive reports, which can be exported as PDF files or shared digitally, allow you to bring the right arguments to your prospects and secure more sales. By using the reports to offer solid advice on real estate projects, you will achieve a relationship of trust between you and your clients.

The next step? Request a demo to see our real estate valuation software in action: