Property valuation: All you need to know about a property
Property valuation
A valuation gives you an objective and reliable assessment of your home’s market value. Whether you’re selling, buying, refinancing or just curious about the value of your home, a thorough valuation from a certified appraiser can give you the answers you’re looking for.
Here you’ll find answers to everything you need to know about valuations. We can also provide you with a free, no-obligation quote from a skilled and experienced valuer in your area.
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What is a valuation?
A valuation is a detailed and professional assessment of a property’s market value, carried out by a certified valuer. During a valuation, the appraiser will carefully inspect the home, both inside and out, review relevant documentation such as drawings, permits and completion certificates, as well as analyze recent sales of comparable properties in the area.
Based on this thorough review, the valuer will prepare a report estimating what the property is most likely to sell for in the current market. A valuation differs from an asking price in that it is more comprehensive and is carried out by an independent and objective professional, not by the estate agent selling the property.
What does a valuation cost?
The price of a valuation depends on the size, location and complexity of the property, but in most cases it costs between NOK 5.000 and 10.000.
Examples of valuation prices
- Small and medium-sized apartments: NOK 4.000 to 6.000
- Terraced houses, semi-detached houses and small detached houses: NOK 5.000 to 8.000
- Larger detached houses: from NOK 8.000
Larger properties such as farms or commercial properties have a higher price due to the size and complexity of the assessment.
The cost of a valuation is an investment that can give you valuable information and peace of mind, whether you’re selling, buying or refinancing your home. In many cases, an updated valuation can contribute to a smoother sales process or better conditions for refinancing. Part of the cost of the valuation may also be tax deductible as part of the selling costs when selling your home.
Different valuation terms:
Valuation is an overarching term that refers to the process of putting a value on a property. Valuation, valuation and e-valuation are all a form of valuation.
- Valuation: A thorough assessment of the property’s market value, based on an inspection by an independent valuer. All factors that may affect the market value are taken into account. This is the most expensive valuation method, but also the most thorough.
- Valuation (carried out by a broker): A valuation is usually carried out by the estate agent who is selling the property. In such a valuation, there is often more room for interpretation of how the various factors can affect the price. A broker does not normally have the same knowledge of building technology as an appraiser, and will therefore base the assessment to a greater extent on what the eye can see, in combination with other relevant factors.
- E-appraisal: A form of valuation that first came onto the market because banks felt that estate agents’ valuations could vary greatly for the same property. The e-appraisal is also carried out by a real estate agent, but is based to a greater extent on statistical data about similar properties, in combination with an inspection carried out by the agent. E-valuation became the new industry standard for the valuation of homes in 2017.
What is checked during a home valuation?
During a valuation, the valuer carries out a thorough inspection of the home, both inside and out. All rooms are carefully inspected, and an assessment is made of the general standard, maintenance needs and any improvements. The valuer looks for signs of wear and tear, damage or defects that could affect the value of the property, such as moisture damage, rot or subsidence.
In addition to the physical inspection, the valuer will also assess the technical condition of the property. This includes a check of the roof, facades, windows and doors, as well as an assessment of the heating, ventilation and electrical systems. The aim is to uncover any deficiencies or deviations that may require repair or affect the value.
Externally, the appraiser will examine the plot, foundations, drainage and any terraces or extensions. Factors such as sun and light conditions, views and noise levels from surrounding areas will also be assessed.
Another important part of the valuation is a review of relevant documentation, such as drawings, building permits, completion certificates and any rental contracts. The valuer will also obtain information about the zoning status, municipal fees and other factors that may affect the value.
Based on the physical inspection, document review and an analysis of comparable sales in the area, the valuer will prepare a detailed report with a reasoned valuation of the property.
What reduces the valuation?
Several factors can have a negative impact on the valuation and lead to a lower valuation of the property. One of the most important is poor maintenance and visible decay, such as wear and tear, damage or lack of upgrades over time. Serious defects such as moisture damage, rot or subsidence can require costly repairs and thus reduce the value significantly.
Another factor is outdated or poorly functioning technical facilities, such as old pipes, electrical systems or insufficient insulation. This may indicate a need for extensive and expensive upgrades in the near future.
Location also plays an important role. Conditions such as an unattractive neighborhood, noise from traffic or industry, or limited sun and light conditions can reduce the property’s market value. The same goes for an impractical or inflexible floor plan that is not adapted to modern needs.
Even seemingly minor issues such as poorly maintained outdoor areas, gardens, fences or terraces can give a negative impression and affect the final valuation unfavorably. Anything that reduces the overall attractiveness of the property in the market may be reflected in a lower value in an appraisal.
How can you increase the valuation?
There are several steps you can take to increase the value of your home and thus achieve a higher valuation. Regular maintenance and refurbishment are important to keep the property in good condition and prevent decay. A well-maintained property will be viewed positively by the valuer and contribute to a higher value.
Upgrading key rooms such as bathrooms and kitchens to a modern standard is often an effective way of increasing the valuation. Timely and functional furnishings in these rooms will increase the value.
Another factor that can have a positive impact on the valuation is an appropriate and practical floor plan. A good sense of space, natural light and sufficient storage space are qualities that are highly valued. Modernizing an outdated floor plan or removing walls to create larger and more open spaces can significantly increase the value in the appraiser’s assessment.
Energy efficiency measures are also relevant to the valuation. Retrofitting insulation, replacing windows with good insulation or installing a heat pump are upgrades that can reduce energy costs and also count positively in the valuation.
The valuer will also assess the exterior of the property and take first impressions into account. A well-maintained and attractive outdoor area with a well-kept garden, freshly painted facades and neat patios will raise the perceived standard and thus also the valuation.
How long does it take to get a valuation?
How long it takes to get a valuation can vary depending on the size and complexity of the property and the availability of the valuer. In most cases, you will be able to receive a completed valuation report within a week of the inspection being completed.
The actual walk-through and inspection of the property usually takes a few hours, depending on the size of the property and the number of rooms to be assessed. Following the inspection, the appraiser will spend time analyzing the findings, comparing with similar sales in the area and preparing the final report.
How old can an appraisal be?
A valuation provides a snapshot of the property’s value at the time the assessment is carried out. As a general rule, it is recommended that an appraisal is no older than 6 months when used in connection with the sale, purchase or refinancing of a property.
This is because the housing market is dynamic and prices can change relatively quickly. An appraisal that is more than six months old may no longer give an accurate picture of the value of the property in the current market situation.
If it’s been a long time since the last valuation, or there have been significant changes to the property or the market, you should consider obtaining a new and updated valuation. This ensures that you have a correct basis for decision-making based on current conditions.
What should you do before the appraiser arrives?
Before the appraiser’s inspection, there are several things you can do to prepare the property and facilitate the most accurate and efficient valuation possible:
- Tidying and cleaning: Make sure the property is clean and tidy. This gives a good first impression and makes it easier for the appraiser to thoroughly inspect all rooms and surfaces.
- Small repairs: Fix loose door handles, peeling paint or other small defects. Although this doesn’t necessarily affect the final value, it can give a better overall impression.
- Documentation: Gather all relevant documentation, such as drawings, building permits, completion certificates, receipts for upgrades and any rental contracts. Have this ready and available for the appraiser.
- Availability: Make sure the appraiser has easy access to all parts of the home, including the basement, attic, storage room and any rental units.
- Information: If there are any special features of the property that may affect the value, such as recent renovations, additions or planned developments in the neighborhood, you should inform the appraiser.
By following this advice, you will facilitate a thorough and efficient inspection, which in turn contributes to the most accurate and reliable valuation possible.
Are valuation and appraisal the same thing?
The terms valuation and appraisal are often used interchangeably, but there are some important differences between the two. An appraisal is a formal and detailed assessment of a property’s market value, carried out by a certified appraiser. The appraiser conducts a thorough inspection of the home, both inside and out, and bases the valuation on factors such as location, standard, area, technical condition and comparable sales in the area.
A valuation is usually carried out by a real estate agent and is often less detailed and formal than an appraisal. The estate agent bases their assessment mainly on recent sales of similar homes in the same area and considers factors such as location, size and general standard. The agent’s valuation is more of a price estimate and forms the basis for a recommended asking price when selling.
While an appraisal is carried out by an independent and certified professional with specialist expertise in building technology and valuation, a broker’s valuation is more sales-oriented and takes greater account of market conditions and expected interest from potential buyers.
In situations where you need formal and thorough documentation of the property’s value, an appraisal from a certified appraiser will weigh more heavily than a valuation from a broker.
Why should you use an appraiser?
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Objective and neutral assessment:
An appraiser is an independent professional with no vested interest in the sale. Their assessment is based on facts and professional expertise, not influenced by sales considerations. -
Specialized expertise:
Valuers have in-depth knowledge of building techniques, materials, legal requirements and market dynamics. This expertise ensures a thorough and reliable assessment of the property’s condition and value. -
Thorough inspection:
An appraisal involves a detailed review of the property, both inside and out. The appraiser uncovers any defects, deficiencies or maintenance needs that may affect the value. -
Formal documentation:
The appraisal report is a legal document that provides a detailed description of the home’s condition and value. This report can be used in sales, purchases, inheritance settlements, divorces or disputes. -
Peace of mind and protection:
By basing important decisions on an appraisal from a certified appraiser, you reduce the risk of misjudgments or disputes after the fact. The appraisal gives you a solid and objective basis for decision-making.
How do I get a quote for a valuation?
To get a quote for a valuation, contact various valuers or valuation companies in your area and ask for a quote. Also check their expertise, experience and delivery time before you choose. This is a time-consuming process and not something everyone has time for. That’s where we come in.
Fill in the form on our site with information about your property and your requirements, and we’ll match you with the most suitable surveyor in your area. We work with a wide network of certified appraisers across the country, and our goal is to offer you a seamless and efficient experience. Our service is free and non-binding.
Once you’ve filled in the form, the appraiser in question will contact you directly to discuss the assignment further. This way, you save time and resources on finding the right appraiser and can feel confident that you’re getting a reliable and competitive valuation from a skilled appraiser in your area.