When will I need a property valuation?
How about getting double and triple the price for the assets you have? Only if you have done a property valuation with the right company! Remember: they must be an eligible company who is doing valuation while following the rules and regulations of the country.
Property valuation is definitely important, because it creates so many opportunities for us to secure returns in investment.
What is property valuation?
A property valuation is an estimation of a property’s value. A company’s worth can only be seen and gained in the future, and are affected by Demand, Utility (Satisfaction), Scarcity, and Transferability (ownership rights).
When will I need a property valuation?
There are many reasons you might need a property valuation –
1. Buying and selling property
while buying or selling property, you should not decide on anything before knowing the real value of the property. For example, property from a bad location or an overpriced house will be a loss and is a big NO.
Even if buyers want to rent a house, property valuation is still important. This is because the rent of a property will have to be 6–10% of the estimated property price.
2. Future planning for the estate
Planning for the future of your house by having a property valuation is included to make a fair deal. For example, if the owner wants to give the house to his/her children after he passes away, a proper property valuation will make it easier for the future.
3. Retirement planning and mortgage
Once a person retires, it would be better for them to not have any mortgages. Certainly they would want to spend their retirement mortgage-free. Hence, knowing a property’s current value will help to plan for the future and ensure smart financial and mortgage-free decisions.
4. Property tax
A good valuer or appraiser will make sure to give the buyer justice regarding taxes. If the tax is getting higher than what it should be, the property owner can appeal and fight for it through the assessment report.
The taxes can be made lower by the tax office if proper documents and applications are provided.
5. About capital gains
A property valuation will make sure that the capital gains will come out on the basis of fair market value, be it while getting advantages of favorable amenities, giving renovation fee, or paying the right amount of tax.
Thereupon, it can be said that valuations can shift the seller or buyer’s entire investment strategy, which is why it should be a must-know for you.
Article by: IQI Global
