A Property valuation or appraisal is an important process when you are trying to sell or buy a property of real estate. There are several other advantages of this activity apart from sale and purchase. Different types of bank transaction, legal documentation, financial reporting or other regulatory and business dealings may also require a person to get his or her property evaluated from time to time. It is a vital and critical process that should be completed with the help of a qualified professional property valuer only.
What is it all about?
A Property appraisal is the process of assessing the price or worth of a real estate asset. It helps identify the actual worth and value of a building, piece of land or any other commercial or residential property. Property appraisal can be done for various purposes and objectives some of which are provided below:
- If you want to sell your property
- If you want to buy a property
- Financial reporting of assets and properties
- Legal documentation of ownership and transfer of properties
- Getting loans from banks or pledging your property for financial purposes
- Leasing land or building from various sources
- Taxation purposes
- Division of property between partners or heirs
- Liquidation of property due to any reason
- And many more.
Large number of valuators:
Property appraisals are mostly carried out by professionally qualified personnel in the industry. They have the license to pursue this profession and can only work with authorized dealers and evaluators. There are a number of companies and individuals offering property evaluation services in Australia and other countries as well.
Tips for Selection:
Before making the selection for one, you should consider the following tips and guidelines:
- Search for a number of options on the internet and yellow pages
- Select the companies that are located in the vicinity and understand the local market and real estate scenario effectively
- Make sure the company or evaluator that you select has the authorized license to value properties in that area
- Check for some customer references and prior projects undertaken by the firm
- Find out if the evaluator or his firm is on the authorized panel of reputable banks and other financial and legal institutions
- Compare their services and prices with other competitors in the market
- Carry out proper documentation with agreement on the price, deadline of project, and service rendered in the evaluation report
- Take information from family members, friends, and coworkers before making the final selection.
Beneficial for all:
Property appraisal or evaluation is mostly done to assess the fair market value of a property. It is important for both the seller and buyer to be aware of current worth of the property in the real estate market. It helps avoid any kind of misjudgment or confusion in the deal between the two parties. It makes the bargain fair and just for both the parties of the deal.
Factors affecting valuation:
Property appraisal is not a simple process as it seems. In valuing a property various aspects and factors needs to be kept in mind. Some of them might be obvious while others may be indirectly affecting the fair market value. Few important factors of evaluation are provided below:
Demand of the property in the market is critical for making an accurate evaluation. The more the demand, the higher the price of the property and vice versa.
- Utility provided by the property can enhance its fair market price. With more options of usage the price or value of the property will be more. Limited utility will reduce the overall value of property
- Scarcity of a property or being rare or one of a kind can have a strong influence on the property value.
- Transfer options and regulatory framework of the property is also a significant factor contributing towards price valuation.
These were some important basics about property valuation and hiring a good valuer in Melbourne or in its vicinity.