When there is a need to value a home for various reasons, we often come across various opinion and thoughts from many of our friends, relatives, neighbors and colleagues. While some of them might be genuine and correct, there are quite a few such opinions which are nothing but opinions without any element of truth or fact attached to it. It is therefore important for us to be aware of the various myths and stay away from it. At the same time, we should also be aware of the facts and realities that are associated with property valuation.
Before moving further into the subject let us try and understand what land valuation is all about. It is nothing but a report issued by a certified, qualified and competent professional stating the fair market value of a property that is being either bought or sold. Though this report could be of help to both buyers and sellers, buyers in particular find it extremely useful from many points of view. It helps them to make up their mind whether the price quoted by the seller is correct or there is some room for renegotiation.
Further, there are many subjective elements in a valuers’ report which also could be very useful for the buyer. For example, a good valuation report will talk about the legal status of the property, give some insight into possible surprises like easements and other encumbrances and also talk about the infrastructure in the area where the property is located.
Now coming to the various myths associated with property valuation, the most common myth that we come across is that valuation is not obligatory and in many cases it is a waste of money. Nothing can be more away from the truth. Valuation report forms a very important part of document based on which conveyancing takes places and property taxes and stamp duty amounts are also calculated based on this report.
The next important myth is that gardens and backyards have only limited impact on the value of the property. This again is only half true. Today’s valuers in particular attach lot of importance to the quality of gardens and backyards and it could impact the value of homes by quite a few thousands of dollars. Quite often we come across the myth that bank valuations are always on the conservative and lower side. This again is a myth because valuations are not done by bank staffs but by qualified and certified valuers.
Before getting to understand the various ways and means by which one can ensure the right property valuation, it is important to know why valuation of properties is needed in the first place. The main purpose of property valuation is to let the stakeholders have a clear idea about the fair value of the real estate asset that they are planning to buy or sell. It is not a piece of information but a number of important processes and steps are taken based on this report. Hence, it would be wrong to suggest that property valuation is optional and also a waste of many as many of us often think it to be.
The success of your property value will depend on various factors such as the current state of the real estate market and also the type of real estate agent that one chooses. There is a need to assess each and every property accurately and also find out if it has some unique features that could contribute to its value. Since the sales proceeds that your property fetches is directly proportional to the market value fixed by the property appraiser, it is very important to ensure that is valued correctly and optimally without infringing on any law of the land.
While there is no doubt that the goal should be to get the highest value for the property in question, the basic things should be right in place to enable the valuer to fix the best possible rates for the same. The property should be located in a good place and its present condition should be good. Though the age of the land may not have much significance when it comes to the construction, age does matter. Further there are other important aspects like fixtures and fittings, the quality of the garden, backyard and other outdoor constructions, and last but not the least, the steps taken to make the property environment friendly. All these have an important and significant role to play.
The method of valuation that is being used by the valuers also could have a bearing on the value of the property. Though the onus is always left to the valuer the customers could do their bit to ensure that it reflects the right value. At the end of the day there is no doubt that the customer has much a role to play in ensuring the best value of the property as does the valuer.
What exactly are the reasons for valuing properties? Is it a necessity or an option that can exercised when needed? These are common question that we come across from many customers. First and foremost valuation is a must in only certain situations. For example when you are planning to buy or sell a real estate property you could need the services of professional valuers. Again if you have a factory, office, commercial property or even immovable assets such as stocks, shares and commodities you could need a valuer to find out the fair market value of the same. Hence there is no doubt that there is frequent need to hire these professionals thought they might be mandatory only when it comes to buying and selling of homes and other types of properties.
Now coming to the various points to be taken into account while valuing properties, here are a few points that could be helpful. First and foremost, there cannot be a straight jacket rule for valuing of properties. Though there could be some general guidelines the actual valuation method and type of valuation would depend on specific situations and needs. Hence, identifying the need of the customer is the most important factor when valuing a property.
Talking about general guidelines, here are a few that could be considered very uniform. Location is the biggest factor that contributes to the value of a property. Hence, valuers take location as the most important input while valuing a property. The better the location, the higher will be the fair market value of the property. The next point that needs to be taken into account is the age of the property. While the land will certainly continue to command higher value as years go by, the construction value would depend on its age. New properties will certainly command higher rates.
The next important factor that could impact the valuation is the size of the property. A bigger property will most certainly fetch a higher valuation. Apart from these general parameters there are other factors too that could impact the valuers report. The absence or presence of easements, covenants and other encumbrances will have a negative impact on the property. In the same light properties that are eco friendly and environmentally safe also might command higher rates. Last but not the least, the quality of gardens and backyards could also play a role in increasing the value of properties by a few thousand dollars.
There is little doubt that property valuation is one of the most important steps that one has to go through before the ownership of the same gets transferred from one entity to another. Valuation of property is just one of the many steps that are required to be carried out before transfer of ownerships. Hence it is quite common for customers to take the help of professionals when it comes to going through these various processes. The complexity and difficulties involved makes it virtually impossible for customers to try and do it on their own. Though valuation is often considered to be one of the easier processes here too it has been found that it is best done with the help of professional help and support.
Valuation business was quite easy even a few years or a decade ago. However, it is no longer the case. Competition has increased steadily and today even established valuers are finding it extremely difficult to run their business successfully. Therefore to help overcome ever increasing competition it is extremely crucial for valuers to find out some innovative ways and means by which competition can be outsmarted. There are quite a few ways by which this can be done. At the end of the day one has to bear in mind that valuation is a service and if as service providers we are able to add more value to the customers, it would be the best way forward to take on competition.
Amongst the various ways and means by which valuers can take on competition, being present aggressively on the internet is something that can easily be tried out. Just by having a website and ensuring that it has the desired amount of traffic can go a long way in getting in touch with prospective customers and informing them about the reasons why it makes sense to take our customers. If we can go a step further and offer online valuation that would certainly be an icing on the cake as far as customers are concerned. Given the time constraint that many customers face this would certainly be a great value addition to them. They would certainly be excited about the prospect of getting their valuation reports on the mail inbox instead of making repeated trips to the valuers’ office. Last but not the least, being aggressively present on the social media networks is also something that has to be always kept in mind.
There are a number of reasons why property valuation is considered very important for any real estate buying and selling. Unless the buyers and sellers are sure about the fair market value of the property they will not be able to take a final call on the buying or selling decision. There is no doubt that the market is a good indicator of the rough market value, but this is only indicative in nature. It has to be certified and authenticated by a certified, experienced and capable professional. That is what the main role is of property valuers and appraisers.
Whenever a property comes up for valuation, the valuer starts off by asking for the various documents pertaining to the property. He goes through the same carefully and in most of the cases examines the property physically. The main purpose of physical examination of the property is two-fold. First and foremost it helps the valuer to ensure that the measurements, location and other aspects of the property are exactly the same as available in the property documents. The next important role is to find out more about the overall development of infrastructure in the area where the property valuation melbourne | valsvic is located. Though this is not the main purpose of any valuation report it is something that is found very useful to the buyers in particular. The availability of other amenities and facilities is also something that valuers usually make a mention in their valuation report. Quite often valuers also go a step forward and try to come out with valuation of similar properties in the neighborhood.
A combination of all these bits and pieces of information without any doubt plays a big part in enabling the buyers in particular to take a firm decision on the property in question. Apart from the above main roles and responsibilities, good valuers are those who will be in a position to handle almost any type of valuation. Whether it is simple vanilla valuation of complicated backdated or retrospective valuations they should be able to handle everything professionally. Apart from real estate valuation, professional valuers also help in other types of valuations. These could include valuation of plant and machinery, storage spaces, commercial complex and buildings, immovable assets like shares and stocks just to name a few. There are many valuers who also help customers in compensation valuations. Last but not the least good valuers are those who are able to offer various methods and tools for valuing properties and other assets.
Before understanding the need to identify the right valuer it is important to have a reasonably good idea about the importance and significance of valuation in the first place. Valuation is mainly done to have the right and authentic information about the fair market value of a property that is either being bought or sold. Since any real estate buying or selling could run into thousands or even millions of dollars, it is very important for us to be sure that the transactions is being done at the right price. Though the market could give an indicative rate of the property in question there is a need to have it corroborated from a professional valuer. Hence, there is a big importance of valuation report from a qualified, certified and experienced valuer.
Now that we have a reasonably good idea about valuation and its importance, let us try and find out the various ways and means by which we can identify the right valuer. The first attribute of a good valuer is that he must have rich experience in this field. As a rule of the thumb, customers should only look for valuers who have put in at least ten years or more into their valuation business. Experience counts a lot in this business and some of the most complicated and tough valuation cases are best handled by valuers who have the right experience in this field.
The next important point that should be kept in mind is the need to have a formal qualification and a formal certificate. Without these two things not being in place, it would always be better to stay away from such service providers. Thirdly, a good valuer is one who must be able to offer all types of valuation services to their customers. They must also be well aware with the various methods of valuations.Whether it is revenue method of valuation, cost method of valuation or something else, they must be able to meet the customers’ requirements perfectly well.
It is also important that modern day valuers must make effective use of the internet technology apart from automating the entire valuation process. This will go a long way in offering valuation at a cost effective pricing and will also save on valuation time.