Yes, it is very important to conduct a property valuation. This article highlights the reasons for property valuation and the benefits of house valuation. Valuing your property and understanding the real estate market inform you on how much to price your property and when to sell it.
Property in real estate consists of land or any other thing permanently attached to the land. This attachment may be a natural creation or man-made. We focus on man-made things in this write-up which includes:
Property valuation in simple terms deals with finding out the worth of your home. This assessment is done by considering several factors like the property details, location of the property, current market condition and many more.
There are several circumstances in our daily activities that require property valuation. Property valuation goes beyond individuals directly involved in the real estate industry. Lay people once in a lifetime may have to undertake some property valuation. Some of these instances are explained below;
Stakeholders in real estate either buyers or sellers undertake valuation always in their line of duty. Property valuation is the heart of the real estate business. Sellers or property owners need a valuation to get the best of offers from the market by first knowing what truly their property is worth. Owners undertake property valuation when they want to list their houses or properties.
Buyers on the other hand conduct a valuation to ensure value for money for the property being bought. Buyers have at their disposal several options of properties to choose from hence conducting an assessment of these properties give them the best deal to go for.
A mortgage is a loan contracted to purchase a property. Mortgage lenders or banks provide this loan with interest to be paid overtime. Failure to honour this periodic payment can lead to a cessation of the property by the lender.
Finalising a mortgage demands a professional property valuation conducted by lenders or banks. This valuation helps them to match the loan amount to the value of the property. Bankers are careful not to pay more than the worth of the house.
Where the mortgage valuation is lower than the value quoted for the property, the buyer is supposed to add up the remaining amount or get an additional loan elsewhere.
Matrimonial valuation occurs among married couples who decide to split up. When a divorce becomes the next best decision to consider, one must also be thinking about organising assets to ensure easy separation.
A person’s property is mostly their most expensive belongings, hence accurate valuation is vital to ensure fairness during a divorce. Mere approximations will not benefit the parties involved, hence the need to carry out a house valuation during a separation.
Sharing the inheritance of the deceased could be one of the difficult things to do when there is no relevant legal guidance. A probate valuation is very important to ensure that parties will receive what is rightfully theirs. Using a probate valuation helps when you decide to sell the properties. Property valuations are needed when there are multiple inheritors, it helps to ensure peace as a result of the fair sharing of these properties.
The UK government charges property taxes on properties owned. Proper valuation will ensure that you pay the right amount as a tax. The value of your property determines the tax you pay. An overstated value will make you pay more tax than required. Property valuations are conducted for property tax purposes.
You will need a property valuation when insuring the property against damage. People insure their homes and their belongings against fire, theft, damage etc. Insurance companies need the value of your property as a basis to charge an insurance premium. Both parties the insured and the insurer take valuation very seriously as it is the foundation of their insurance agreement.
An undervalued property affects the insurance company because it leads to less premium payment. In times of damage, they may need to pay more to restore the property to its original position. On the other hand, overstating the value of a property will affect the insured as premiums will be unfairly increased.
People co-own properties mostly for business ventures or as a family. Your share of the property could only be known after a professional valuation is conducted. In future, ownership could be transferred after current valuations are made. Property valuations are also requested when there is joint ownership of properties.
Refinancing a mortgage means trading an existing mortgage for a new one. Old mortgage terms and conditions are changed. The amount of loan, tenure and interest may be changed in the new agreement. Refinancing your mortgage will call for an appraisal of the property again. The new lending agreement will need a property valuation to approve this refinance.
Last on this list is the legal requirement for property valuation. The court may order a property valuation when necessary in handling a court case. The judicial systems in situations like this will use professional values.
The above situations that call for property valuation also answer the question, “Why do you need property valuation”? The reasons for property valuation are also embedded in the situations that call for valuation as discussed. It should be also noted that the same reasons for valuation and when it arises discussed above can also be used to respond to the types of property valuation.
Yes, it is worth getting a property valuation. Anyone who undertakes a property valuation seeks to get value for money when buying a property or get the optimal worth of a property when selling a property.
Other benefits of property valuation as discussed above include ensuring fair apportionment of properties and paying the right amount of property taxes and insurance premiums.
A valuation process involves;
We all know that the value of an estate is not only the building but the land itself. Some lands are even more valuable than the building on them. The appraiser assesses the land by looking at location, topography, size and potential future benefits.
Inside the property, the valuator takes measurements of the size of the building and checks the number of rooms and fixtures and fittings available.
Externally, appraisers check ease of access for people and cars, general security, number of garages and other useful structures outside.
Age, overall condition and structural integrity of the property are key items checked when conducting a valuation. Appraisers will look out for rots, cracked walls and overall aesthetics. Valuators do take pictures of key issues when conducting an appraisal. An appraisal may take days hence patience is needed.
There are a few things you can do to get a good score before a valuation is conducted. In real estate, valuations are mostly staged activities hence a good staging can give you a nice score. These are a few things you can do to prepare for a valuation.
There are a lot of benefits obtained from having your property valued and several circumstances warrant the need for property valuation daily. There are also several things you can do to increase the value of your property.
Contact us at RealAdvisor for more information on property valuation and how you can increase the value of your property. Buying and selling properties can be stressful and involve a lot of administrative work. We at RealAdvisor are ready to help you value any property. Contact us to sell or buy any property.
The following points explain the term property and the issues surrounding the valuation
An independent property valuation is a valuation conducted by a valuer who has no implicit or explicit interest in the property they are valuing and the outcome of the valuation process. Such valuation involves a thorough inspection of the internal and external features of a property. This kind of valuation is accepted in mortgage and legal issues. They are usually done by certified professionals.
In the UK, you will usually require a degree or a professional qualification approved by the Royal Institution of Chartered Surveyors (RICS) to work as a land and property valuer. Some of these degrees are surveying, real estate management, construction, civil and building engineering, property development and valuation.
However, estate agents do not need any required qualifications in the UK. They are not required by UK law to be licensed. Experience or passes in GCSEs or equivalent can qualify one to be an estate agent.