What Reports are required for Property Valuation
What is Property Valuation
Property valuation is the process of evaluate the market value of any land which is also called land valuation. Property valuation is very important steps before buying any residential and commercial property.
Before you want to buy and, sell the owned land or rent the piece of land for commercial or residential purposes. As a buyer or seller, you might think how the valuation of property done is and what tools need to support the process of evaluating land.
One supporting tool is the property valuation report. It can be in the form of a home, a commercial office, agricultural land and it can be in form of buying and selling.
What Report Prepared here
A report in which the property in question is valued using the valuation methods. It is generally prepared by the appraiser for the buyer to avoid paying too much for a property.
- Geographic location of land Very important
- Property Nature like Residential, Commercial, Agricultural.
- Age of construction
- Approved documents from legal authorities
The valuation report must be acquired by not less than 3 local agents or agencies.
To prepare the valuation report, several property valuation methods are applied which are:
- The Comparable Sales Method which is based on price of similar properties in the local area.
- The Income Method that involves understanding the present value of investment and the future returns to be gained.
- The Cost Approach which involves estimating the value of land without the building in free market.
The comparable sales method and the income method are most commonly used as property valuation methods in the Loughton market.
Appraisal reports are an essential part of the buying, selling, and leasing process because banks that make loans to buyers are careful to ensure that the loan is not higher than the value of the property.
So the next time you are considering buying or selling a property, familiarize yourself with the different valuation methods and read through the property valuation report several times.
Real estate appraisal helps a business or individual determine the value of a property. The fair price of a piece of land, factory or building can be determined by a real estate appraisal.
Real estate appraisal also includes valuation of trademarks, copyrights, intellectual property rights, goodwill, and business services related to marketing and advertising.
There are numerous reasons why a property is valued. Some of them are listed below:
Buying or Selling Real Estate:
Property valuation is important when buying or selling real estate. Property valuation is also important when a person wants to rent out its value. Rent on a home is usually 6-10% of the appraised property price.
To take out a mortgage on a property:
Property valuation is important when a buyer wants to take out a loan against the security of a property. Valuation is also done when a loan is needed to construct a building.
For tax purposes:
Property valuation is important for calculating taxes on real property.
For transfer of property:
When a person wishes to transfer his property, he must estimate the value of the property. Stamp duty is calculated based on the value.
In the event that a person or an organization declares itself insolvent and a compulsory acquisition or auction of the premises is carried out, the valuation of a property is important.
Property valuation helps an organization or individual determine the value of the property. The appropriate price of a land, factory or building can be estimated by valuing an area.
Brand valuation appropriate process of intangible assets value brands support intellectual property transparency, validity, reliability, financial parameters for this purpose Taylor Chartered Surveyor is always there to help you buy property with good return.