Valuation is the approximation or estimation of the price a property can be worth for purpose of buying, selling, advertisement, sales audit rating, or taxation. Valuation is very important and is based on key fundamentals and practices. This has brought up the formation of organizations to carry out a valuation and governs the valuers, example of this organization include the international federation of surveyors. It is a premier international organization representing the interest of surveyors worldwide.
For one to be able to carry out property valuation they must have undergone education of the same, training, test, and be competent to do the job. He or she must display and uphold high principle conduct and professional practice.
Why carry a valuation
The aids of real property are realized after a long period, of time, unlike many other investments. A property owner needs to consider economic and social trends, government regulations, and environmental conditions as they may contribute to the value of their property.
Some of the reasons for carrying out property valuation include;
It gives peace of mind due to its legal nature
Both the buyer and the seller would be at ease as the valuer would be there to guide them in the pricing and transaction process.
Helps in making a sound decision for both the buyer and seller
A qualified and competent property valuer will correctly evaluate your property and assist you to understand the worth of your property according to the trending market value, mortgage or banks loans, insurance purposes, taxation, financial planning, audit sheets, allowances, rental negotiation, and many others.
Property assessment
The main aim of agents who work on behalf of vendors is to always get the maximum price or minimum. This may cause them not to be accurate as in pricing as they could easily over or underprice your property. This is why it is important to have a certified and qualified valuer to assess your property accurately.
According to Username Investment CEO Reuben Kimani, allowing real estate investors to do site visit before buying the property is a very key to ensure that they understand what they buy and if it is worth the price.
Independence to avoid unrealistic expectations.
Personal attachment can obscure decisions. Having emotional attachments to a property can affect the worth of the property because they believe it should be a worth certain amount. To avoid this, you need a valuation for realistic expectations.
Valuation is a legally binding document, it is important during negotiations of buying and selling of a property and helps in solving disputes in case of any.
The process can be termed both art and science which makes valuation very useful. Accurate estimation is important for a successful trade. If a property is devalued a fast sale may be assured but the money lost will be a great loss. The vice versa is also true, if the valuation is too high a property may sit on the market for a considerable amount of time, increasing the chances of sellers becoming frustrated and accepting low prices.