Property Valuations: It’s not as easy as you think
Property valuation service, sometimes it is a need, sometimes it is want and sometimes it is an urgent requirement. What so ever is your reason of having property valuation services, you should know that – it is not that easy to evaluate the property’s worth. So much of information, calculations, experience, expertise, and professionalism is needed to evaluate the property value.
Property valuation is the way – to estimate the actual market value of the property. The reason to find the property value can be – selling, buying, rental, insurance, taxes, mortgage, compensation etc. The best is to hire a property valuer to evaluate the property’s worth.
Though lots of information will be needed to evaluate the property’s worth like –
- Total area and construction area of building.
- Building Location and neighbourhood.
- Age and condition of the property.
- Structure durability & maintenance required in the building.
- No. of rooms and bathrooms.
- Availability of garage & garden.
- Renovation needed or not.
- Look & feel of kitchen and bathroom.
Note – If you are an owner of the property, then legal documents of the property will be needed while doing property valuation.
Also local market condition & current economy condition puts a great impact on the real estate property value. Now, after collecting the information related to the property, the real estate property valuer has to find the comparables.
What are comparables and why they are needed?
Comparable, is the property similar like subject property. Which is sold out in recent months and it is nearby the subject property. Though it is tough to find the two property alike but while finding the comparable valuer have to make some adjustments too.
For example – Subject property is having 3 rooms, 2 big halls, kitchen, garden and garage space.
Where as comparable is having 4 rooms, one hall, kitchen, terrace garden and backyard space.
Basically, these two properties are not identical but type of the property is residential, both are in same location, comparable property is sold out in last month and area of the properties are same.
While evaluating the value, property valuer will consider it as comparable but along with this some adjustments have to be made while doing property valuation.
As the most common approach is – ‘sales comparison method’ used to find the property value. Which is another big task to find the comparables. In case of residential properties it is little bit easier to find the comparable but for commercial buildings valuation, use of sales comparison method is not the right approach.
After this, the analytical skills of the real valuer came into picture. Lots of calculations have to be performed while finding the right value of the property. Then the valuer has to prepare the property valuation report after finding the right value of the property.
The property valuation report contains all the information of the subject property, owner of the building, calculations along with current coloured pictures of the property. Which is considered as authentic, genuine and legal report and widely accepted by the government and in court rooms.
There is the wide difference in the property value estimated by the property valuer and real estate agent. Though it is difficult one, but the right value is estimated by the property valuer only. To hire an expert property valuer contact us and get the solution.