The moment an individual decides to buy, sell, or invest in real estate property, their first thought is to consult their friends and neighbors. While it is understandable why you’d like to take the opinions of your friends and family members into consideration, the truth is you’re missing out on real information.
It is good to do a little bit of research and keep yourself updated on the market trends but unfortunately, that is not enough. There are things your neighbor who recently sold her house for a whooping price might be unaware of. You don’t want to lose out on the best value of your property because of the lack of information.
When should you go for a property valuation?
Property valuation or appraisal is done for a variety of purposes by Valuations SA commercial rental valuation. The most common of them are the sale or purchase of a property. The other purposes include property insurance, financing, land or house taxation, determining rent or lease, etc. Sometimes banks ask for a property evaluation when you apply for a home loan or for mortgage purposes.
It is also required if you want to transfer the property or prepare a will.
How property valuation benefits you?
In very simple words, your property valuer would help you in getting the closest estimated value of your property. The professionals are well aware of the market trends and also know what changes in your property would result in an augmentation of the value. For example, did you know some buyers would willingly pay a higher price for a swimming pool or a garden area? The valuer would know such things and provide you tips on how to better the value of your property.
You can also ask the valuer to aid you in reducing taxes.
How does property valuation work?
When you go for a real estate appraisal, the valuers take into account multiple factors affecting the value of your property. For example:
- Social trends: Social trends in property valuation play a huge role in determining the price your house or shop would fetch when put for sale. It basically means the features or conveniences which are most in-demand among the potential buyers at a given time. For example, in present times, green building certification attracts many young investors.
- Economic trends: these include the interest rates on property, investment potential in the future, and the general growth rate of the national and global economy. It might sound far-fetched, but how the economy is doing at the moment you are considering to sell or purchase a real estate property affects the prices directly.
- Presentation of the property: there is a widespread myth that a fresh coat of paint will increase the price of a property manifold. That is incorrect information. A newly painted interior might attract buyers though it depends on their personal choice.
- Comparing data and statistics: the actual value of a property depends upon the demographic data, the land prices per square feet in an area, the neighborhood, etc. Valuers arrive at the value of a particular property by analyzing such data systematically and subjectively.
As someone unaware of the various factors affecting the sale price and value of your property, you are more likely to fix an incorrect value to your property. It might create problems for you in the future. If you affix a much higher value, you might face a reduction in the number of potential buyers. Similarly, if you ask for a much lower price you’d lose out on profits.
From a legal point of view also, it is always better to approach an approved valuer for the valuation of your property. Since your valuer would give you a certificate of valuation mentioning the details of the property, it’d save you from unnecessary bargaining with the seller or buyer (depending upon the context). The certificate is admissible in the court of law as evidence if the need arises in the future.
It is also helpful for the buyers in that it carries most of the information regarding the property backed by statistical analysis and trends. Thus if you’re interested in buying, you can make a smart purchase on the foundation of the valuation certificate.
In conclusion, it is better to get an appraisal of your property done, by experienced and reliable valuers.
October 9, 2020
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Indian Property
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