It is important to have a thorough property evaluation when you are purchasing a property. And this has to be done whether you are choosing this to be your dream home or looking for a new investment. This task is one of the responsibilities of a buyer’s agent and they will leverage their resources and expertise to ensure that you make an informed decision.
The first step taken
In a property evaluation is understanding your specific goals and requirements. The commercial property buyer’s agent will meet with you so that your requirements can be discussed along with the preferred budget. This will help them tailor their evaluation strategy so that they take in your objectives. The key criteria in your property search can be defined with the help of the buyer’s agent. This includes of the size of the property, property type, location and any desired features you are looking for. By finalising these criteria, you will be able to ensure that the properties evaluated by the agent meet your expectations. To understand the value of a property and whether it has a potential as an investment, you have to conduct market research.
A comparative market analysis
Will be performed by the buyer’s agent to evaluate the value of the property. They will compare this with similar units or homes in the area that are currently for sale or that they have sold. They will also compare it with units that were on the market but didn’t sell. This is what helps them ensure that the property is priced reasonably. The neighbourhood will also be analysed including the proximity of the neighbourhood to amenities, the quality of schools in the area, future development plans and crime rates. These details will give you an idea about the living conditions and the long term value of the property. The current market trends will be reviewed by your buyer’s agent so that they can give insights into price movements, overall condition of the market and demand and supply dynamics. By understanding these trends, you will be able to time your offer properly and also have a good idea of the future value of the property.
There will be a physical inspection of the property as part of the evaluation.
There will be a visual inspection carried out by the agent where they will look for signs of wear and tear, overall condition of the property and structural issues. They will check the roofs, walls, foundation, doors etc. for any visible issues. They will also recommend that you hire professional inspectors so that a more in-depth evaluation can be performed. They can assess the condition of electrical systems, plumbing, pest infestations and HVAC systems. A comprehensive overview of potential issues of the property can be given as a result of these inspections. This will have an impact on your decision to purchase it or not as you can see whether it affects the value of the property.