What is a rental appraisal?
Rental appraisal is an assessment of the worth of your property, both in terms of its current market value and what it could potentially be worth if you were to sell it. There are many reasons why you should get a rental appraisal done, but here are some key ones:
1) To make sure you’re pricing your rentals correctly and making as much money as possible;
2) To ensure that your investment property is always in good condition and up to date with current regulations;
3) To identify any potential problems or areas of improvement before they become serious issues and
4) To keep track of the value of your investment and how it’s performing over time
Why rental appraisals are important
Even though you may have a good understanding of your strategy, you might still be questioning why you need an expert’s opinion for a rental appraisal. Getting an expert appraisal can help you optimize your property’s market value and improve your returns over the course of the tenancy.
1) The real estate market is constantly evolving
Unless you have the required market knowledge, tools, and time to do comprehensive research and property appraisal, this process may become too daunting. In these cases, it’s best to utilize an expert appraiser. A regular appraisal is a good idea after receiving initial analysis because market conditions can change rapidly over even short periods of time.
2) Use data to inform your decisions
It’s crucial that you make wise decisions when it comes to your rental property investments. You need to be calm and confident in your choices, because they’re business-related and will affect both your current life circumstances and future opportunities. Whenever you make a strategic decision, there shouldn’t be any doubt or vagueness.
Every business decision you make should be based on data and analytics. Having an expert appraiser will give you access to this data and market insight that can help improve your investment strategies in the future. Your appraisal report will give you direction on how to proceed with your rental strategy and investment, plus evidence-based support for the decisions you make. However, even though we provide professional guidance, the final decision is still yours to make.
3) Invest now for greater returns later
It is important to keep in mind future market price increases for rent when you are first pitching your rental property and agreeing on tenancy terms. If you charge too little rent now, you will be losing out on money that could have been made over the entire period of the tenancy agreement.
You could potentially lose good tenants and have difficulty filling your property later on. An expert appraisal report will help you find the right balance so that you can make the most out of your rental property.
4) It’s 100% free
A reliable property appraiser will provide their services for free and without any pressure to sign up for additional services. The process should be simple and straightforward, with no hidden costs or hassle.
9 things considered during rental appraisal process
Whether you are getting your property appraised for renting or selling, it is important to know what relevant areas, fixtures, and amenities are being examined to determine the value of a potential home. Here are 9 things the property appraiser will assess:
As they say, location is key – especially when appraising a property. Agents take many factors into consideration when determining the value of a potential home, such as its proximity to local attractions, what school catchment it’s in, and available amenities and public transportation. However, don’t discount your property if it isn’t situated near any major landmarks – sometimes these quieter areas are just as desirable to buyers.
#2 Size of the property
Real estate agents appraise a property’s value by examining the size of the land, structure, and relevant areas inside (e.g., living area or main bedroom). They must compare these numbers to those of similar properties in the same vicinity. It is also key to know who potential buyers might be. The size of the property is not only decided by the square footage of the indoor area, but also factors in any outdoor areas such as parking and whether there is a carport or garage. The size of any gardens or terraces/balconies will also be considered.
#3 Number of bedrooms
The number of bedrooms is an important factor in assessing a home’s value. Generally, the more bedrooms a house has, the higher its market worth will be. Real estate agents must take several other things into account when appraising a home, such as the size and location of bedrooms, whether they have an ensuite or built-in wardrobes. Other considerations during the valuation process include how many comparable homes recently sold (and for how much), as well as your home’s general condition.
#4 Condition of fixtures and fittings
When it comes to analyzing which fixtures and fittings will be included in the sale price of a property, agents first take into account whether they’re actually needed for the home. For example, curtains and light fittings may not always be necessary. They’ll also consider the condition of said F&F; if everything looks old and needs repair, potential buyers might lower their offered price.
#5 Areas for maintenance and improvement
All properties have flaws, but some are worse than others. When trying to appraise a property, the real estate agent will look at all aspects of the house that need attention or even just a facelift. In fact, they are often great people to ask about where you should spend money on home improvements because local buyers usually approach them first when looking for places to live. Although agents aren’t experts in this area, they can provide useful guidance here.
Sometimes all your home needs is a fresh coat of paint or new door handles. Other times, you might need to renovate the kitchen or bathroom. However, note that you don’t always need to do a whole renovation – smaller fixes like adding a new vanity or changing the lighting can make just as big of an impact on the price you achieve from selling.
Of course, with any situation like this, you must weigh up the cost of fixing things against how much more money you stand to make from selling.
#6 Overall presentation and furnish
By modernizing your furniture or working with a property stylist, you can increase the chances of selling your home. Presentation is key when potential buyers come to see your house; you only get one chance for a first impression. Leave visitors imagining themselves in your wonderful home by putting effort into staging it correctly.
#7 Entrances and exits
The real estate agent appraising your property will consider the ease of access to things like the front door, parking, and utilities. While some people don’t mind a little extra legwork, others might find it difficult or inconvenient. So if you’re trying to sell your house to a young family or elderly person, making it as easy as possible for them to get in and out is key.
#8 Arrangement and control
Real estate agents appraise a property based on the potential building and structures other vendors have created in the area as well as whether there are any restrictions limiting what can be done with the land. The location of the zoning also plays a role in how much people are willing to invest in the property. If there too many restrictions, it becomes considerably less desirable.
#9 Recent sales and market trends
It’s clear that the state of the market largely determines your property value. To find out what price to present you, an agent will look at sales in similar nearby areas and scrutinize general market trends. Although the role markets play cannot be denied, recent sales and overall trends are not always indicative of what a potential buyer may pay for your home– they might falls head-over-heals as soon as they walk in. In this circumstance, they would most likely be willing to offer more than what the market is suggesting.
Free Rental Appraisal with Strathfield Partners
There are many different ways to get a rental appraisal, but one of the most convenient is to do it online. With Strathfield Partners, you can get an accurate and objective assessment without having to take time out of your busy schedule. So if you’re an investor in the rental market, make sure you get a rental appraisal with us – it could make all the difference to your success!