Your home’s value can fluctuate over time due to market changes and home improvements. Knowing its current accurate valuation is crucial when considering selling or borrowing against equity. Here are key events and changes that indicate it’s time to revalue your Melbourne property:
Outdated Previous Valuation
Home valuations are usually valid for 3-6 months. If your last valuation was done over 6 months ago, it is likely outdated. Melbourne’s property values fluctuate frequently, so a valuation over 6 months old does not reflect the home’s current market value.
Major Renovations or Improvements
Major upgrades like kitchen and bathroom renovations, additions, swimming pools or landscaping can significantly boost your home’s value. If you’ve made major improvements, your old valuation no longer applies. A new valuation is needed to account for the value added by renovations.
Local Area Changes
Local neighbourhood changes like new transport links, parks, schools or other amenities can impact property values. Positive area changes may have increased your home’s value well beyond its old valuation. A current revaluation reflects the area’s transformed appeal.
Significant Market Shifts
Melbourne’s market is dynamic and changes quickly in response to economic events. Periods of rapid value growth or decline due to market shifts can drastically change valuations in a short timeframe. Old valuations become outdated fast in fluctuating markets.
Loan Refinancing or Equity Release
An updated valuation is usually required by lenders when refinancing or borrowing against home equity. Even if you got a valuation 6 months ago, lenders will want a current valuation to base new loan terms on.
Selling After a Long Period of Ownership
If you’ve owned the home for over 5 years without a valuation, pricing against old valuations could undersell the property. Current market values and buyer expectations could be very different now. A new valuation avoids this mismatch.
Expired Valuation Discount Periods
Lenders usually give a valuation “discount” period where they accept old valuations, often 6 months. Beyond this discounts expire and they require fresh valuations for accurate lending decisions.
When in Doubt, Revalue
With Melbourne’s fluctuating market, if you have any doubt that your old valuation still applies, it is advisable to revalue. The small upfront valuation cost can prevent issues or underselling later. Better to be safe with an updated valuation.