Property valuation is the analysis of property transactions to determine comparable value. Valuers gather and evaluate a range of information to determine the market value of a property. A Property Valuator can make a deal or break a deal. It is a general notion that the value determined by any buyer for the house is actually too high then what it should be. Assume now, that a buyer was to buy a home in the market today, and then the buyer would buy it definitely if the particular property price of today was exactly something of the property it was worth and sold for a price determined some ten years ago. For example, the present house we are looking for is somewhere around ten years ago. It is now double the price. The same house is now costing some at the peak of the market. In this case, hypothetically the ceiling price of the house would be and the floor price.
If you are valuator, or the seller one can pitch the buyer on the lines that the land value was somewhere less than the price of the value of the house time of 10 years ago. This was less than the cost of the price it would take to build the house at that time. If you were to buy the house at the property cost of that day added to the price of the land of that day, then would the buyer not buy? Mostly, the buyer would say ‘Yes!’ and hence, a new hypothetical floor price of the property today will. A buyer has to be convinced that still the property is offered at not much less price in today’s times than it could be tomorrow.
However, valuation is used for multiple purposes including setting limits for the sale and purchase of properties, determining compensation following the compulsory acquisition of property, setting rental levels, asset accounting and management, lending and associated financial dealings, property settlements, property rating and taxation systems, and property portfolio analysis. However, the valuation is done; the valuator is to be accompanied by the seller for sure. But the sellers are also bound to have a fair idea about property valuation on hand before going for valuation in terms of:
- About zoning
- Kind of inventory available in market
- Similar properties that are tagged with prices
- The desirability of the property and presentation
- Holding or some accruing costs
- Road access to the property
- Size, shape, and dimension of the property
- Proximity to the nearest metro area (especially if it is a suburb)
- What are the adjoining properties? (Are they: farms, forest land, cultivable, barren, waterlogged, slum areas, landfill site or are they nuclear waste dumps sites?)
However, the price valued is always not much payable and at finality what stands strong is what the buyer wants and sometimes time goes by finding the right buyer and the smart valuator is the one who can persuade an observer of your property into a prospective buyer of your house and make him buy.
Read More : http://www.brisbanepropertyvaluers.net.au