Valuing a property may seem like an easy task, but there is more to it than meets the eye. Determining the market value of the property can be complicated for people who have no training in this area. If you are planning on buying or selling a property, you must know how these values are calculated, or else you could end up paying too much or selling your asset for less than what it is worth. There are many terms associated with this process, which we will explore below. You can visit the page on Perth Property Valuers’s website to know more about professional evaluation.
What Is A Sworn Valuation?
A sworn valuation is a professional property valuer’s opinion of the market value of the property. Sworn valuations are essential in various situations, such as real estate purchases and sales, mortgage lending, and tax reporting. It’s also necessary if you’re going through divorce proceedings and need to share your assets with your spouse. During a separation agreement negotiation process, the most typical example is determining each partner’s home value.
When comparing a full valuation report to an official sworn valuation statement, there are two significant differences. First, the word “sworn” refers to the valuer taking an oath; secondly, certain statutory information about the Sworn Valuer must be included in the report, making it admissible in court.
Every property has its value. Whether that valuation is established by a professional opinion or through actual and scientific methods, this information must be accurate and reliable. That’s where the services of a sworn valuer come in handy. A sworn valuer is someone who undergoes training to ensure they are qualified surveyors with expertise in this field. They provide written reports on the property’s actual market value and help you make informed decisions about your assets.
Sworn valuers work hard to establish values accurately, which means their reports can be used as evidence in court proceedings such as divorce settlements, compensation claims, and bankruptcy proceedings, where disputes may arise over what constitutes fair market value.
Importance Of Sworn Valuation If You Are Selling Property
As a seller, you want to make sure that you are selling at the right time of year and selling for as much money as possible. Therefore, you will need to engage a sworn valuer:
- When your asking price and perceived value are different, a sworn valuation report can help support your asking price by showing that it is in line with the market value, as determined by an independent professional valuer. In addition, you will receive peace of mind knowing that the property has been valued by an accredited professional to ensure fairness and transparency for the buyer and you alike.
- Knowing the market value of your property before deciding whether or not to put it on the market is critical. A sworn valuation can provide an unbiased basis for making the right decision. So before you decide that you should just keep your property because there isn’t much demand for it now, you should have it evaluated first.
For example, if your property is near an area earmarked for a major highway or public transport route, it will be in demand and fetch more than your expected price. However, if the same property were located in an area far from amenities like schools, hospitals, and recreational facilities, it would be valued lower than your asking price.
Importance Of Sworn Valuation If You Are Buying Property
There are many reasons why people end up paying too much for a property. The most common ones include:
- Take the advice of developers and real estate agents who may have an interest in selling their products. Remember that they always want to sell the property to try and show it in its best light, which means selling at a higher price than its actual value.
- Over-rating one’s knowledge and not seeking advice before signing on the dotted line. Sworn valuers are trained to spot mistakes, so if you fail to seek their advice, the chances of making the wrong decision are very high.
What Is The Difference Between A Real Estate Agent Appraisal And A Sworn Valuation?
Because they’re attempting to sell a property, a real estate agent’s appraisal is typically free. However, based on current market conditions, they may estimate how much they believe the property is worth. An estate agent’s estimate has no legal standing, but it does give you an indication of what other people are paying in your area for similar properties. In contrast, A sworn valuation is the most accurate way to assess your property. In addition, these written reports, prepared by licensed or certified professionals, can be legally prescribed as evidence in court cases.
If you have any additional questions regarding property valuation, reaching a qualified valuer that understands the whole picture of the sector is critical in helping you to make the right choices for your property.