Valuation is the process of estimating the value of something. In the real estate industry, a property valuation is an estimate of the current market value of a property. Property valuations are often used by buyers, sellers, landlords, and tenants to determine how much a property is worth, how much rent to charge, or how much to buy or sell a property for.
There are four main types of property valuations:
1. Comparative Market Analysis (CMA)
2. Desktop Valuation
3. On-Site Valuation
4. Automated Valuation Model (AVM)
1. Comparative Market Analysis (CMA)
A comparative market analysis (CMA) is an estimate of the value of a property based on the sale prices of similar properties in the same area. CMAs are often used by real estate agents to help their clients price their homes for sale.
2. Desktop Valuation
A desktop valuation is an estimate of the value of a property that is done without physically inspecting the property. Desktop valuations are often used by mortgage lenders to determine whether or not to approve a loan for a homebuyer.
3. On-Site Valuation
An on-site valuation is an estimate of the value of a property that is done after physically inspecting the property. On-site valuations are often used by appraisers to determine the value of a property for tax or insurance purposes.
4. Automated Valuation Model (AVM) goldcoastpropertyvaluers.com.au
An automated valuation model (AVM) is a computer-generated estimate of the value of a property. AVMs are often used by real estate investors to quickly estimate the value of a property.
