How do we valuate your property?
“How do we value our property? How much does our home cost?”
Most reasons for valuations are mortgages and these are most common and often raised questions. We at Irhamy International Valuers receive numerous requests from Juwai IQI agents and banks regarding property valuation and we are glad to help.
So how do we estimate the value of your property?
Firstly, a few information regarding the property (subject property) will be needed:
- The address
- The type of property
- Example: Terrace, bungalow, apartment and etc.
- The size of the property (land and built-up)
Once we’ve received this information, we’ll proceed to the next step of valuing the property. One of the most general methods is the comparison method – the property is compared to recent sales of equal properties. For example, a terrace is compared to other terraces; meanwhile, a bungalow will be compared to other bungalows.
From our database, we will gather the previous sales (the comparables). Roughly, it will promptly aid us in valuing the estimated price based on the location provided.
Main factors in valuing properties are location and transaction date of recently sold comparables. If the location and sales date are nearer to that of the subject property, the more accurate the estimated value.
Example: Comparison Method
However, a few more principles come into play – the details of the property. For example;
- The property size – Subject property may differ from the comparables.
- The orientation – East or North facing properties are better than West-facing properties. This is because they get the most direct sunlight throughout the day.
- The house number – This might be sensitive or preferred by certain people.
Do note that this is not the final value, it will require physical inspection. The final valuation report will be issued once other factors are weighed in together. Hence, market value.
Valuation is an art and science process, with the common mantra:
“AS WE VALUE, WE DEVALUE“
There are different guidelines for professional valuers:
Malaysia – The Malaysian Valuation Standards (MVS)
Article by: IQI Global
