Home valuation, the process to estimate the actual market value of your house. The question arises – who does the property valuation or house valuation? The qualified and skilled property valuer at a property valuation service provider company will do the house valuation.
- To know the right worth of your property.
- To know the value of the property when you want to keep it on rent.
- To settle the family, matrimonial, legal property disputes.
- To keep the property on a mortgage.
The property valuation is necessary. Well, the real estate property agents and investors know the value of property valuation. As it helps to make the financial decisions confidently and saves them from losing the good opportunities.
First hire an unbiased property valuer, who will inspect the property first, meticulously to determine the actual worth of the property.
Though there are various factors to look upon, some of them listed below –
- Size of the land or property.
- Location of the property.
- Condition and age of the property.
- Nearby amenities.
- Total rooms along with their size available.
- Renovation or repairment required.
- Availability of garden, front yard, backyard, garage.
The valuer observe the property on all these points. People carries misconception and ignore the exterior part of the property which is not right. Exterior part of the property building is the first, which creates the impression in the minds of the valuer and buyer.
It takes around few hours or days to evaluate and prepare the property valuation report. Moreover it depends upon the size and type of the property and details in the report required.
Sometimes, the valuers also advise the owners to make some changes like little renovation in kitchen and bathrooms, paint the house, keep the property clean and tidy, such kind of advices can bring the major change in the look and feel of the property and can increase the value of the property.
So always remember the valuable suggestions given by the property valuer at the time of property visit.
The value, declared by the valuer for the property must not be too high or too low, it should be accurate and appropriate, to find the potential buyer.
To find out the house value, the property valuer use some methods –
Sales comparison method – As the name indicates, the sales comparison, here the valuer revise the sales history, to find the sold out property similar to the current property(that has to be evaluated) and then compares. Similar properties are called as comparables. The comparables act as a guide to the valuer that helps to determine the right value of the property. While using this method the valuer has to make some calculative adjustments, as it is very difficult to find two buildings alike.
Formula method – The second most common method opted by the valuer for property valuations is Formula method. Here they add the land value and building value and deduct the depreciation cost of the building.
While adding the value of land and building, various things should be considered that are already mentioned above in the article.
So these are the methods that are followed by the property valuers to find the exact value of the property. Hire a property valuer is a tough job, research well because its vital to have a good property valuer to make profitable transactions in the real estate world.