Valuation of your own property is a very important aspect. More often than not it is not done with due care and judgment leading to a faulty assessment of valuation. Financing of any project based on your property primarily depends on the valuation amount in the current market. It is a thorough job of the professionals and several options for property valuation service are available in the market to choose. The valuation is primarily done thorough reviewing nearby property sales, analysing market trends and finding the best approach of marketing of the said property. Several other factors are also taken into consideration.
Methods of Property Valuation:
There are several agencies available in the market who specialize in valuation of property. Though the approaches may be different all of them depend on few common indices to assess the valuation of any property. They can be summarized categorized in the following manners:
Comparable property method:
In this process similar types of properties in and around your neighbourhood take into consideration. The average value of per unit area sold in the neighbourhood is multiplied by the actual area of your property. Then adjustments are made based on specific advantages or disadvantages of the property concerned.
Discounted value of the rentals:
In this process the projection is based on the future real estate growth capacity in your area where the particular property is located. It includes the potential supply of properties in the same location as well scope of capital inflow in that area in the near future. This is done to ascertain the future rental appreciation of the property in question. These future capital flows are discounted to the present in commensuration with the current interest rate. This, in turn provides an estimate of the valuation of the property.
Valuation Service Providers:
There is no dearth of service providers in this sector. With the advent of the real estate boom along with scarcity of good real estate property this has become a booming profession. It is very much necessary to select the correct agency to assess your property. As this requires area specialization it is always advisable to choose a local agent over a fancy one. Additionally experienced and reputed service providers are time tested any can be relied at any point of time.
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Necessity of Property Valuation:
Most home finance agencies and banks require a valuation of property approved by a certified valuer, in addition to the ownership of the property. As security for any loan is mostly evaluate against the existing property this becomes obligatory. Moreover the remaining life of the property along with liability, if any, is also required to be estimated for proper loan assessment. For many corporate clients seal of approval from established valuer is a basic requirement.
In a nutshell, if you are really interested to value your property in the market with any specific projects or for any other reason it is always judicious to take the help of professional property valuation service. This will not only bring about the true potential of your property but also assess your financial status at the same time.