When you’re buying or selling your home, the big question on everyone’s mind is: “how much money is the property worth?” This is a good question for a number of reasons, namely because the mortgage you end up taking out on your home is going to dictate your financial picture for likely the rest of your life! But, while the value of a home might be the most pertinent question on your mind, it’s definitely not the same thing as the value of the land or the condition of the land.
Valuation surveys and property surveys are very different in their own right and they’re two things that every prospective homebuyer and seller should think about investing in before they start interacting with the housing market. This blog is meant to help dispel some of the confusion between the two and clearly illustrate why both are important.
Valuation versus survey
The easiest way to realize the difference between property valuation and a property survey is this: a property survey does not determine its value and its value isn’t always dependent on the survey. Case in point, a piece of land can be valued highly based on its location, features, surrounding properties, etc., which are determined by property surveyors in Floresville, TX, but ultimately, a mortgage lender will determine the worth of the land.
Now, there are two types of surveys that can assist a lender in putting a price on a piece of property: a homebuyer’s report and a building survey:
- Homebuyer’s report: This is your run of the mill report that comes with most property interactions and it focuses on the condition of the property as a whole, versus what needs to be done to restore its true value if the land has issues. Is the asking price for the property reasonable based on its condition? Are there features on the property that will impede its value from rising or staying consistent? Are there improvements that need to be made before the property can and should be sold? All of these questions and more will be answered in a homebuyer’s report.
- Building survey: This survey is going to focus on the house and its relevance in today’s day and age—including what amenities need to be upgrade and what the cost to make upgrade to the building will amount to. The building survey focuses almost solely on the building itself and less on the property, which is why it’s commonly a secondary survey that’s used in conjunction with a homebuyer’s report.
Now, another huge factor to realize with the above reports is the fact that homebuyer’s reports are generally all that’s needed to help illustrate the value of homes built within the last 30 years—however, for buildings and homes older than 30 years, a building survey is going to be an instrumental addition.
When it comes down to it, property surveyors in Floresville, TX can play an instrumental role in helping to shed light on many variables that are considered in property valuation, but surveyors by no means set the value of a property—this is generally done by the controlling party or mortgage lender associated with the property.