We get it. Valuation doesn’t concern anyone until someone’s need for it arises. And when that moment comes, questions will plague you about this thing of importance in the business world.
If you’re new into this valuation thing, here are three things you must know about the basics of property valuation.
What exactly is property valuation?
Property valuation is analysis or assessment of the monetary value or worth of a building, site or any property for a particular period of time. Different factors affect valuation, including current market conditions and projected market and rental value of the property in question.
Why do valuation figures differ?
The theories and formula used to arrive at a certain value are not yielding an exact data. A property valuation report is a hard-bound piece of paper, consisting of formulaic information, an in-depth inspection of the location, plus comparison of data pertaining to the same market.
Inspection will include a thorough visit to the location, visiting all the rooms of the building, plus what remains of the site. Photographs will be taken to serve as proof of what the property looks like. These will also be used in concluding the valuation report.
Why are there times when the sale price doesn’t match the valuation report?
A valuation report is not supposed to match the sale price. It is just a way of telling how much a property is worth so that one can come up with a sale price that doesn’t oversell or undersell. In other words, a property valuation report is a prediction of a sale price. And like most predictions, it’s not always accurate. But it was supposed to be close. A property valuation report also serves as a protection from financial loss.
Valuation is a little bit more complex to those who know very little about its science. But if you’re willing to find out more about property valuation, let Aviso help you. Contact us if you need any help about valuation. We will be more than willing to help you.
