Is Property Valuation Mandatory – Some Food For Thought
August 19, 2014
Whenever a property is bought or sold, it is quite obvious that there are a number of procedures and steps that have to be gone through. One such important process is property valuation. The main objective of property valuation is to ensure that all the stakeholders get the right information regarding the fair market value of the property in question. This is important because whenever a property changes hands the monetary consideration involved could run into thousands or even millions of dollars. Hence, all the stakeholders would like to be doubly sure that they are gaining something out of such transactions.
From the buyers’ point of view, they would like to be sure that they are buying the property at the right price. As far as the seller is concerned, they would like to be certain that they are getting the right price for the property in question. Since, the stakes involved are quite high, the role of property valuers is extremely important to say the least. Many customers might be of the opinion that property valuation is just another process and it can be bypassed if both the parties agree to it. While this might be theoretically correct, there are bound to be problems along the way. For example, whenever there is a need to calculate the property tax, it is imperative that there should be a valuation report. The property taxes are fixed by the authorities not based on the market rates but by the valuation that is available in a professional valuers’ report. In the same way, when there is a need to calculate the stamp duty payable on agreements, here too the role of property valuers is extremely important. The authorities take this report as the base for fixing stamp duty values.
Hence there is hardly any doubt that valuation of properties that are up for sale or purchase is not a choice but a necessity. Additionally, professional valuation reports also contain useful information that is subjective in nature. For example, a good valuation report talks about the status of infrastructure in the area where the property is located. It also makes a mention about the availability of various important and amenities for making life easy for the property buyers. Further, valuation is not something that should be done only when a property is up for sale or purchase. It can also be very useful for property owners if they are keen on knowing the current value of a property.
What Exactly Is Valuation And Why Is It Important
July 31, 2014
There are a number of steps that must be gone through before the ownership of a property is transferred from one entity to another. The processes are quite a few in numbers and property valuation is also considered to be very important. Let us try and understand more about valuation and why it is considered to be a very important component when it comes to buying and selling of real estates.
Real estate buying and selling usually runs into thousands or even millions of dollars. Hence, it is quite important for both the buyers and sellers to exercise care and caution when going through such transactions. The buyers would like to be doubly sure that they are buying the property at the right price. On the other hand, the sellers would like to be more than certain that they are getting the right consideration for the property. Hence, they would like to tread carefully and take opinion from experts. This is where the role of property valuers becomes extremely important.
The main role of any professional property appraiser is to help the various stakeholders to get the right information regarding the fair market value of the property. While there is no doubt that the market is a good indicator of prevailing rates, this alone cannot be considered as the final word. It is important to have the same certified and authenticated by a professional. This is the main role of a property valuer.
Apart from this main role, it would also be pertinent to mention here that there are a few more important roles that are performed by property valuers. They come out with a number of other subjective reports which are of great help to the stakeholders, (buyers in particular). These reports talk about the infrastructure development in the area. They also make a mention about the availability or absence of basic amenities and facilities like hospitals, schools, entertainment facilities, transport facilities just to name a few. Many valuation reports also talk about the quality of people who are a part of such neighborhood. There are also many valuers who go a step beyond and also give a report on the possible fair value of properties that are similar in size and location.
Hence, taking the above facts into account there is no denying the fact that valuation is a very important subject matter. It has to be handled carefully and should be left only to professionals for smooth completion of the transaction.
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.