Property valuation, It may seem like yet another expense but it can be a necessity for your property sellers, property buyers and real estate investors in order to determine the actual purchase price of your property.
Basically, it is a process which determines the economic value of a your property. The process is not as easy as it sounds. The process is unique in its nature as the property valuation is not even constant. It depends upon various multiple factors too. To get the actual value of the property the property valuers melbourne’s experts are required.
Property valuer seeks to find the right value of your property. It is a price at which property owner is willing to sell the property and buyer is willing to purchase it.
Though it is very difficult to distinguish between the Value vs. Price –
Property value is the really worth the property and property price is the actual cost to buy same. Therefore price paid to buy the property might not always be the same as property’s market value.
This difference between the price and value makes the bond between property buyer and property seller. Where both have control over the other and can influence each other’s decision. The property can be sold out at less price even when its value is high. The property buyer can take the advantage of such conditions and buy the property at low price not equivalent to the value.
These are the Foundation pillars of the property valuation
The advantages of the property are – These are not the goods that are quickly used, they are realised over longer period of time. You must take into consideration the various economic and social factors for property valuation, that may influence the four main elements of the property valuation –
1. Demand – It is the desire to buy or magnitude of interest to own a real estate property in the market.
2. Utility – It is the capability of the property to satisfy the needs and desire of the prospective buyers.
3. Scarcity – It is the limited supply of property.
4. Transfer Abilities – It’s an ease with which you can transfer the rights to the new owner.
But there are various methods evolved till now to evaluate the real estate property value but the here are the top three methods mentioned below which are used by the property valuers melbourne –
Sales Comparison Approach –
This method is used to estimate the property value by comparing recent sold properties that are nearby the property with similar features.
1. Comparable property should match with the subject property.
2. Time of valuation of the comparable property should not be very long. Should be somewhat near by it.
3. Location of the comparable property should be near by subjective property.
Though we know this is not the perfect tool to evaluate the property valuation. It is just a baseline to get any idea of the property’s value. As property valuer melbourne gives you the real value of the property if it has something different to offer.
To know the actual worth of your property, property valuers Melbourne is there to help you out. Whether you have any kind of property valuation query like residential property valuation, commercial or industrial valuation, building insurance assessment contact property valuations melbourne for assistance.