30 Factors That May Impact a Property’s Valuation

During the process of purchasing a property, the following factors should be carefully considered, as they may affect the valuation of the house.

• Lightweight construction (e.g. weatherboard) – generally      considered lower in durability than brick or concrete.

• Owner-builder properties – lack of warranty or quality assurance      from a recognised developer.

• Unapproved extensions/alterations – e.g. sunrooms, garage-to-bedroom      conversions.

• Structural defects – such as wall cracks or foundation      subsidence.

• Roof deterioration – aged roofing, leaks, or poor  maintenance.

• Moisture, mould, pest issues – termite damage, dampness, or strong      odours.

• Small floor area – especially apartments under 50 sqm,  often unacceptable to lenders.

• Poor floor plan design – inefficient layout or overlapping   functional spaces.

• Low ceiling heights / inadequate natural   light – reducing  appeal and liveability.

• Poor maintenance condition – long-term neglect or lack of  refurbishment.

• Lack of on-site parking or driveway – particularly detrimental for detached      housing.

• Impractical land size – very small or excessively large lots limiting usability or development.

• High-risk zoning – flood-prone, bushfire, or landslip  areas.

• Planning or heritage overlays – restrictions on redevelopment or modifications.

• Narrow frontage or excessive depth – constraining design and building layout.

• Irregular land shape – reducing development potential.

• Restrictive planning controls – unfavourable zoning or density  limitations.

• Restrictive covenants – limiting construction type or use of  land.

• Remote or low-demand location – limited sales evidence and weaker demand.

• Poor external presentation – unattractive façade or limited street  appeal.

• Neighbourhood profile – high concentration of public housing  lowering desirability.

• Proximity to negative influences – e.g. powerlines, cemeteries,  substations.

• Adjoining major roads, railways, or  factories  – subject to heavy noise or pollution.

• Low community safety – high crime rates or noisy  neighbourhood environment.

• Lack of essential infrastructure – limited transport, retail, or service  amenities.

• Specialised property types – less marketable, with limited buyer  demand.

• Automated/desktop valuations – may fail to reflect interior quality  or upgrades.

• Prudent lending valuations – banks adopt conservative positions  during market volatility.

• Lagging sales evidence – valuations not reflecting rapid  market appreciation.

• Distressed or low-price nearby sales – dragging down comparable benchmarks.

This article is for general information purposes only and does not constitute investment advice.
If you are considering buying property in Melbourne and would like professional guidance, feel free to get in touch with us.