Whether you are buying or selling a property, you would want to know its true market worth. This is where real estate property valuation comes in.
Property valuation is a crucial step when making important decisions pertaining to a variety of property-related endeavours, including buying/selling, financing, real estate insurance, investment analysis, property transfers, and taxation.
What Happens in a Property Valuation?
Property valuation is an assessment of the fair market value of a real estate property. Real estate property valuation experts visit the premises to take notes on the property. These notes and various other factors and existing data are taken into consideration to calculate the accurate value of a property. This information can then be used in real estate transactions.
Why is Property Valuation Necessary?
When you enter the real estate market, you must be familiar with property valuation. Without knowing the right valuation of your property, you could be taken advantage of. You could end up selling for less or buying for more.
Property valuation is important in the following scenarios:
- Making an offer while selling /buying
This would be the most obvious reason one would need a property evaluation. To make an offer to a prospective buyer, one has to know the fair market price. The buyer can only then make a counter offer.
- Availing of bank loans
If you are applying for a loan with the property as collateral, it is important to give an accurate valuation to get the most out of the loan. An inaccurate valuation could hurt your chances of getting the amount that you require.
- Proper financing
The property you wish to purchase needs to have a proper valuation so that a financing agency like a bank can help you. If the valuation is not right you may receive amounts that are lesser than what you require. Upfront expenses and maintenance works may cost you more and this could be a problem. With an accurate property valuation, it can be solved.
- Paying tax amounts correctly
The valuation of a property is also required when there is tax involved. Income tax, wealth tax, capital tax calculations, tax depreciation and rent are some of the instances where a property valuation becomes important. A correct valuation means you pay the correct amount and avoid fines.
- For division among family members
A property owned by a person must be bequeathed to a family member or other beneficiary. A divorce settlement also means the property is divided amongst the parties. In these instances, a proper valuation can give the concerned parties the data required to divide the property.
Recommended, How do Valuers Assist in Mergers and Acquisitions
Summing It Up
As you have seen, valuation forms the basis of many critical real estate transactions and is important for many purposes. However, accurate real estate valuation requires proper know-how and experience.
If you are looking for a trustworthy and experienced real estate property valuation firm, your search ends here. At RNC, we are known and trusted for over three decades for providing a wide range of expert valuation services including real estate property valuation. To avail our property valuation expertise, get in touch with us today!