A property valuation refers to a detailed report of a property’s market value. It is determined based on the property’s location, condition, and several other factors. It can sometimes be impossible to understand how much money is required to buy or sell any property if you don’t know where it stands in the real estate market. While the numbers mentioned in the valuation report will not be the actual cost of the property, they can help determine the final price. Additional factors can influence the sale price, like the potential customers’ market knowledge and how much they have liked the property.
Why Is A Property Valuation Important?
There are various reasons why you must get a property valuation done. A fairly done evaluation will help you arrive at a competitive rate. It will also help in calculating taxes on it.
For Buying and Selling Property
You must get the property valued before buying or selling it. The valuation can help you determine the market value of your home or commercial building. The property valuer will visit the property, assess its current worth in the market, and determine its value.
To Rent Property
Property valuation can also be useful while renting your property. It can help you determine a competitive and fair rent. Once the valuation is done, you can quote an accurate amount to your potential tenants.
For Mortgaging Property
If you plan to get a loan against your property as security, then you will have to get a valuation done. The estimated price that is determined for the property will influence the amount that gets approved for your loan.
For Transferring Property
If you want to transfer your property to someone else, you will have to estimate its value first. The property’s worth will determine what the stamp duty for the transfer should be.
For Tax Purposes
You need to pay several taxes on your property. Some of them are vacant land tax, wealth tax, ground rent tax, municipal tax, and property tax. These taxes need to be paid to different departments in the government. The property’s estimated value is taken into account to determine how much you need to pay in taxes. And to get this estimated value, a property valuation is a must.
An individual or organization’s property can be acquired if they declare bankruptcy. In such situations, the property is valued before auctioning or acquiring it. This valuation will help arrive at the basic price of the auction or acquisition.
People often wonder whether getting a property valued by professionals is worth it or not. If you plan to sell your property or buy a new one, it is definitely worth getting the property valued to get a fair price. Going ahead with the sale or purchase without proper valuation is like shooting arrows in the dark. You will not know the right price for the property, and can even end up losing money in the bargain.