How Often Should I Get a Property Valuation?
How frequently you may need a property valuation report depends on the type of property. In general, here are some property valuation guidelines.
- Residential: Every 1-3 years
- Commercial: Every 1-2 years
- Agricultural: Every 1-5 years, depending on the nature of the property
However, if you’re actively buying, selling, refinancing, or going through any type of legal process, you likely won’t want to wait this long in between valuations. In a volatile or high demand market, the value of a property can shift in a matter of months.
Let’s discuss why up-to-date valuations are important and some key times when an updated valuation report may be necessary.
Why Up-To-Date Property Valuation Reports are Important
For property owners and investors, understanding your property value is key for decision making and financial planning. Since the real estate market is constantly in flux, updated valuations ensure you’re operating off accurate data and information.
Market Value Awareness
Knowing your property’s value is critical for decisions related to refinancing, renovations, or potential selling. A real estate valuation helps you stay aligned with the changing market trends.
Equity Growth Tracking
Over time, it’s likely your property value will appreciate. By keeping a close eye on the property’s value, you can leverage that equity for financial opportunities like loans or additional investments.
Financial Planning and Forecasting
Businesses and real estate investors often rely on accurate valuations for commercial and multi-housing properties to inform annual financial planning and assess potential improvements and expansions.
Environmental and Zoning Factors
In regions where zoning laws or environmental conditions change, frequent valuations can help you understand how these changes impact your property’s value.
When You Should Get an Updated Property Valuation Report
Knowing the right moments to request a property valuation report can help you make informed decisions. While regular valuations are recommended every few years for all property types, there are certain key times when an updated valuation may be necessary.
Buying or Selling a Property
When buying or selling a property, a current property valuation report is crucial for setting a realistic price and ensuring fair negotiations. Ultimately, this can help the sale move forward faster and reduce conflict and complications, which is a win-win for both buyers and sellers.
Refinancing
When refinancing a mortgage, an updated property valuation report can help with negotiating terms. An up-to-date report can potentially qualify you for better loan terms, enabling you to access the maximum available equity for renovations or other financial needs.
Insurance Purposes
Regular property valuations help make sure insurance coverage aligns with your property’s current value. Since property values and replacement costs can fluctuate, these reports can ensure you have accurate coverage without being underinsured in an emergency situation or paying for more than necessary.
Renovations or Improvements
Thinking of making significant changes to your property? Major renovations can have a significant impact on real estate value, so it’s important to obtain a new valuation report to assess ROI of the upgrades.
Major Life Events & Estate Planning
Life events that involve joining or dividing property or adjusting inheritance often require an updated valuation to determine fair property values. These situations could include divorce or separation, marriage, or a birth/death of a loved one. An updated valuation ensures your loved ones are taken care of and financial settlements go smoothly.
Economic Downturns or Booms
Significant shifts in the economy, whether downturns or upswings, can have a direct impact on property values. A valuation report can help you make informed decisions when it comes to buying, selling, or investing in real estate.
Get a Professional Property Valuation Report
If you need a fast, accurate property valuation report, our team is here to help. We serve customers nationwide, providing quick and efficient appraisals of residential and commercial properties, as well as vacant and agricultural land. We can get you a real estate evaluation or hybrid appraisal in five business days or less.