Understanding More About Valuation Business
July 21, 2014
What exactly is valuation and why is it so important? This is a common question that we often come across when buying or selling a property. It is quite normal to come across the need for valuation whenever a buying or selling of a property happens. The main purpose of valuation is to find out the fair market value of the property that is being put up for sale or purchase. While there is no doubt that the market often offers a very accurate estimate of the value of the property, it is important to have it confirmed by an independent and third party entity and that is what valuers’ report is all about. It provides authentic information about the fair market value of the property that is either being bought or sold.
Apart from helping on the fair market value of the property in question a good valuers’ report also has other important pieces of information that are quite useful to the buyers in particular. A professionally presented valuers report amongst other information will also make a mention about the neighborhood and the locality where the property is located. It will talk about the level of infrastructure development in the area, the availability of various amenities or facilities or the absence of it. It will also throw light on the quality of people who constitute the neighborhood. In fact many valuers will go a step further and may also share information about the perceived fair market price of similar properties in the same neighborhood.
The above information will certainly help the buyer in particular to take a considered and informed decision on the entire deal. If he feels that he is paying the right price for the property he will go ahead. Otherwise he might try and rework the deal and if not found suitable, he might back off from the contract. Hence, the buyers’ interests in particular are protected by quality valuation report. Additionally, good valuation report forms the background around which property tax amount are fixed by the local property and revenue authorities. it would also be pertinent to mention here that valuation reports also play a role in helping the authorities to have a fix on the stamp duty applicable for buying and selling of the property.