What Factors Influence a Property Valuation?

By John Anderson

Local Property Valuers in Melbourne

The value of a property is not a static thing. There are many factors which can influence and change the value a property holds, and knowing what these are will assist you when you are looking to buy, sell or invest in real estate.

If you are looking to improve the results of your property valuation, it is important to keep in mind there are many factors you cannot control. Although you can’t change these attributes of your property, there are some improvements you can make which may influence the overall value of your property as well.

Here are the factors which are taken into consideration during the inspection of a property, and which influence the outcome of the valuation report.


Location is one of the key factors which will influence a property valuation. This is due to the large variations in property prices based on location. The exact same house in a desirable suburb of a major city can sell for double or more than one in a rural area. Naturally, the locality of a property is always considered by the valuer while completing the valuation report.

The wider area, the suburb, as well as the direct location of the property should all be considered. A residential property in a less busy area could be valued hirer than one on the main road in the same suburb. However, this may differ for commercial properties as high traffic areas are more desirable.

The proximity to amenities is also important. Being close to transport links, shops, restaurants and schools are all things which may increase the value of a home.


Another factor which can impact a property valuation is the size of both the property and the building. Greater land size will increase the value of a property, regardless of other factors. Similarly, a large building has the same effect in improving the valuation.

During the inspection, the property valuer takes into account not only the size of the building, but also the number of rooms and the layout of these. Some layouts are more modern and desirable than others, for example open plan living areas can improve the value, while cramped or poorly planned layouts can negatively affect the value.


Naturally the condition a property is in will impact the valuation. If a property is in poor condition it will sell for less, as buyers factor in costs of cleaning and upgrading the property after purchase.

Because of this, any issues with the building are noted during the inspection and may impact the value given in the report.

Any large, structural issues which may be safety hazards will have the largest influence on the property value. Smaller cosmetic damages to the property won’t have as big an impact, although if they are consistent throughout the property they may be considered.

Small amounts of damage or imperfections are almost unavoidable with older properties. This is why properties which newly finished buildings are often given a higher value.


Additions to a property such as renovations, significant improvements or added features can all positively impact the results of a property valuation. This is one of the factors which property owners are able to use to their advantage when preparing for a property valuation.

Improvements that will add value to your home include:

  • Adding additional rooms to a building
  • Making improvements to the exterior of the building
  • Including outdoor features such as a pool, deck, or shed
  • Improving interiors with home upgrades such as kitchen or bathroom renovations
  • New flooring or fresh paint
  • Landscaping of garden and yard

All of these improvements could be factors which help to increase to final value figure during a property valuation.

Additional Factors

As well as those listed, there are some additional factors which will influence the valuation of a property. Unlike the previous examples, these aren’t physical attributes of the property but rely on external considerations.

One of these considerations is the risk factors present for the property. During the valuation a risk analysis will be conducted, taking into account any environmental risks to the property. For example, if the property is in an area prone to flooding this will impact the final valuation.

The market condition at time of valuation is another additional factor involved. While completing the valuation report, the valuer will conduct research into comparable recent sales data in the local area of the property which will provide an indication of what the property could sell for in the current market.

All of these factors influence the property valuation and assist the valuer in reaching an accurate current market value for the property. If you are considering purchasing or selling a property, reach out to our team today for an independent, expert property valuation.