Art of Valuation plus Science and How it Affects Your Property Value

Art of valuation plus science is another way of saying that property valuation is part art and part science - you must have heard this before. Valuing property depends on many factors and only some of these factors are black and white. Due to the subjectivity of these factors, it is very seldom that two valuers will arrive at the same value outcome for a property. 

Valuing property involves a combination of meticulous observation, data gathering and confirmation, statistical analysis, and mathematical calculations, as well as expert judgement that is based on years of experience in various real estate markets.

The science part when valuing property involves the research, calculations and empirical comparison with the market and the quantitative and objective measurement of the subject property. The art part is based on a combination of qualitative and subjective judgement as well as personal experience-based expertise.

While both the science and art parts are always there, the proportion of each part varies from valuation to valuation.

So how does this Affect your Property Value? 

The proportion of the science part to the art part that a valuer uses when valuing property varies depending on the valuer. Whilst the science part (examples: the difference in block size or distance between the subject property and the comparable sales) can be objectively verified, it is a matter of each valuer's perception and opinion for the art part (examples: the relative condition or street appeal between the subject property and the comparable sales). Herein lies the cause of different value outcomes.

There is nothing you can do to change the objective facts related to your property (or the science part of the valuation process), but if you can alter the perception and opinion of the valuer on the subjective areas (or art part of the valuation process), then you might affect the value outcome. (Examples: enhance the appeal of a home's facade and garden, or update kitchen and bathroom fixtures, fittings and surfaces). The independent principal valuer at AskTheValuer has the experience and knowledge to advise you in this area and more.