- Xplore Cities
- Realty Rating
- Realty Grill
- Consultancy Services
The real estate’s valuation is an important aspect of the business. You need proper valuation at the time of property insurance, taxation, investment analysis and sale. Property valuation service is perfect solution for all such queries and problems. Experts at these firms will determine price of your property based on various factors. We have listed down some basic concepts of property valuation services here.
What is the property value?
The present worth of future advantages in property is too hard to calculate. That’s why you should get experts involved. The real estate is a dynamic field and property prices are constantly driven by market forces and development on ground. The property valuation service takes in account all government laws and regulation, environmental conditions and social and economic trends. Scarcity of real estate should be taken into consideration as well. If number of properties in the market is less, the price will be higher.
The owner’s needs and requirements will also drive the price. The demand in the financial markets influence real estate prices heavily. The property valuation service also adds the price for documentation and transfer of ownership rights. In case the new owner finds the damage done to the property, the repair cost will be deducted from the final value. The real estate decisions also revolve around appraisal reports. Investors, banks, businesses and governments use appraisal reports as an opinion of the value of real estate. This reports states official market value of the property. But the final price may vary considering above stated factors.
There three methods in appraisal through which property valuation services decide the market value of property. It involves collection of big data. The report adds details such as region, neighborhood, city and nation along with general data. The sales comparison approach used for appraisal is used for land or single family homes. The recently sold property with similar profile would be considered to decide the market value. There are some limitations to this method. The property which we are comparing should be sold within last year for this approach to work. Age, condition and other physical feature of the property will further reduce or increase the price.
The real estate which is improve by one or more building will be evaluated by the cost approach. This second method separately lists down the cost of land and property. It adds depreciation as per currency and inflation. Churches, hospital buildings and churches are sold on this basis as these buildings are not profit generating but useful for greater public good. Building costs will be determined here through tally of individual building components. Structural issues, bad paint or leaking roof can further lead to more depreciation in price. If property is located nearby toxic factor or noisy train station, then its value will be more reduced.
The last income capitalization approach is based on the net income produced by the real estate and amount of returns on investment. Majority of property valuation firms are dealing with this kind of real estate. Shopping malls, office space and other commercial spaces are sold this way.