Buying a real estate property that we can call our own is without any doubt one of the most significant events in our life. For many of us it is dream come true and we would like to do whatever it takes to realize this dream. As first time home buyers we are always ready to walk that extra mile to see that we are able to buy the right property, at the right place, from the right seller at the right price. While all this is great news, there are some challenges and difficulties along the way which also we may have to overcome. Funding or arranging finances for the dream home could be a problem for many. This would involve looking up various sources of funding including banks and financial institutions.
Once this initial part of the activity is over, we will have to get into the actual part of getting the ownership of the property transferred from the seller to the buyer. This is quite a big process and there are a number of steps that have to be followed. These are usually referred to property settlement. Amongst the various processes that form part of property settlement, property valuation and appraisal is also something that has to be carefully considered. We will have look at it in greater detail over the next few lines.
What exactly is property valuation and why is it so important? This is a common question that we often come across from many first time customers. Valuation is a process by which certified professionals help the customers to get a fair idea about the correct value of the property in question. While the market could give an indicative rate, this will not have legal sanction and therefore it needs to be certified and validated by a professional. That exactly is the role of a property valuer. His report is considered a legal document and there are instances where property taxes and stamp duty amounts are calculated using these valuation reports.
There are different types of valuations that could be applicable for different situations and properties. For example for straightforward transactions there could be simple valuations. On the other whenever there is a need to value properties that are old, there could be the need to go in for backdated valuation or retrospective valuations as it is also called. Further, valuation need not necessarily be done only when a property is being bought or sold. It can be done when a property is being rented, leased or even for finding out the current fair market value of the same.
Many of us are under the impression that a property valuation report is just about a few numbers that talk about the fair market value of the property that is either being bought or sold. This is not the case because there are quite a few other things that are of value as far as any property valuation report is concerned. While there is no doubt that the fair market value is the single most important deliverable in a property valuation report, it would be naïve to dismiss this important report based on this single report or figure alone. There are quite a few other things that are of specific importance to buyers and it would be interesting to have a look at the same over the next few lines.
Any professional valuation report will talk about the legal status of the property in question though this job is mainly handled by property lawyers and attorneys. It will talk about the owners as available in the government registry. It will also share some useful information about the legal description of the property and the structures that are built on it. It will also share valuable inputs about the zoning and resource development activities. It will also make a mention about the statutory assessment including property taxes and other levies that are payable.
A good and professional valuation report does not stop here. It also shares a lot of information about the locality where the property is situated. It will make a mention about the scale of development, the kind of infrastructure that is available, the various amenities and facilities or lack of it, just to name a few. A few reports could also talk about the quality of people who make up the neighborhood.
Apart from the above it is also quite common for property valuation reports to make mention about the methods and tools used for arriving at the fair market value of the property in question. These methods must be in line with accepted market practices and principle and must stand the scrutiny of law. Any improvements that are worth mentioning will also form a part of any good valuation report. For example, water conservation methods used, water harvesting methods in place and environment friendly nature of projects are points that could find an importance place in any good and professional valuation reports. Hence, it would be wrong to dismiss a property valuation report simply as another document.
Property valuation in Melbourne | valsvic is indeed a very important subject. Whenever a property is sold or bought there is a need to go through a series of steps and formalities and valuation of the same is considered one such very important and vital step. This is because whenever there is buying or selling of properties it is important for both the stakeholders to be clear that they are entering into a transaction that is profitable for them. While buyers would like to be certain that they are paying the right price for the property, sellers would like to make it sure that they are getting the best deal as far as property sale is concerned. While there is no doubt that market can play a big role in helping the buyers and sellers to have reasonably good idea about the property, there should be authentication of the same from somebody who is qualified and is competent to do so. It is here that the role of property valuers becomes extremely important.
The valuers go through various steps and take various inputs into account before coming out with the valuation report. They also use many methods of valuation of the property taking into account various factors including specific requests from the customers. However, at the end of the day, the onus lies on the valuers to report only the right figure taking into account various factors and putting things in perspective. It would also be pertinent to mention here that apart from the main valuation report there are other important aspects of information that are also useful to the buyers in particular. It would be interesting to have a look at the same over the next few lines.
It would be pertinent to mention here that professional reports from valuers also have mention about the quality of construction, the age of the building, the development of the infrastructure in the area just to name a few. Many valuation reports even go further to find out more about the availability of various amenities and facilities that are so vital for normal and convenient living in a locality or neighborhood. Additionally it would be not out of context to mention here that apart from property valuation there are many other types of valuations where too the role of these professionals is very important to say the least. Therefore identifying the right customer should be the onus of all customers for making property ownership transfer easy and simple.
There are a number of steps that have to be followed before the ownership of a property is transferred from one entity to another. Valuation is one such process that is considered extremely important and also indispensable in many cases. If one looks around the various real estate valuers in Sydney purchases and sales, it is quite likely that there will hardly be any transactions that are completed without the properties being valued. Let us try and understand what the main purposes of valuation are before trying to find out ways by which valuation business can be improved.
The main purpose of any real estate property valuation is to have a clear idea about the fair market value of the property that is being bought or sold. Apart from the market induced rates, when it comes to buying and selling or for ownership transfer purposes, it is important to have the value of the property certified by a qualified and experienced valuer. Such a value has a legal sanctity and is therefore considered very important. Additionally, valuation reports also help in fixing the property tax payable and also to have a better idea about the stamp duty applicable.
Now coming to ways and means to improve valuation business, to begin with the valuers must understand that the market is becoming extremely crowded. Further the ways customers are buying products and even services like valuation has changed quite dramatically over the years. Keeping these facts in mind the valuers must find out new ways and means by which they can move their business from one level of success to another.
Towards this objective the first starting point is to network more efficiently and also to build better relationships. For this to happen today’s valuers must make more efficient and intelligent use of the internet and more particularly the various social networking sites like Facebook, Twitter, Linkedin, YouTube just to name a few. It is also very vital on the part of the valuers to have their own websites failing which they will not be able to expand their network. It also makes a lot of sense to take membership in chambers of commerce and other such institutions which will also help in better networking.
Reaching high levels of success in real estate valuation business is not an easy task. There are a number of issues that have to be taken into account. First and foremost the level of competition in this business is increasing quite dramatically. It is now becoming a case where there are more valuers than the total business that is available out there in the market place. In such situations, there is bound to be intense and cruel competition which at times could be cut throat to say the least. Under the above circumstances, it is very important for valuers to find out other ways and means by which they can move their business from one level of success to another. Here are a few important tips that could be useful for ensuring success of valuation business even in the face of stiffest competition.
To begin with success in valuation is a journey and it will take its own time and effort. There cannot be any shortcuts to this process. This has to be clearly understood by the valuers because it will prevent them from making mistakes which could prove costly. Further, it is also very important for valuers to build their business based on sound principles and objectives. They should never compromise on the quality of services that they are providing to the customers. It is also vital that they should be totally transparent, open and ethical in their dealings with their customers, employees and other stakeholders.
A good property valuation company will certainly have its own team of professionals and will not depend on outsourcing their activities. Outsourcing does not work very well in valuation because it leads to loss of time and the quality of work also suffers. Therefore before moving a valuation business to higher levels, you should ensure that you have the right valuers and other support staff in place.
The next point that is worth mentioning is the need to offer the entire gamut of valuation services under one roof. There are some valuers who offer only the legal aspect on their own. The actual valuation and other administrative works are often outsourced. This is something that should never be encouraged under any circumstances. Being competitive on the price front is also important but it should not come at the cost of quality of service. As a service provider you should know where to draw the line between quality and cost.
Property valuation without any doubt is one of the important steps that should be taken whenever there is a need to buy or sell a home. Even otherwise there could be the need for valuing a property every now and then to have a reasonably accurate idea about the fair market value of the same. The main role of these professionals is to help the buyers and sellers to have a clear and undisputable idea about the fair market value of the property in question. Additionally there are a number of other subjective pieces of information too which are also very useful when a property is either being bought.
As a customer it is very important for you to have some basic idea about the questions or points to raise when looking for a property valuer. This will help identify the right property valuer because there are scores of them in the market place. Separating the grain from the chaff is important because of obvious reasons.
As a customer when hiring a property valuer he or she should ask him about his overall experience in this field. This is very important because however qualified a property valuer may be unless he has experience in this field, he will not be able to handle difficult and challenging assignments. So, you should as a customer be certain that you are hiring only valuers who have put in at least 10 to 15 years of service.
It is also important that a customer finds out whether the property valuer is certified and has a qualification on the subject. A formal certificate is very important failing which such valuers should not be hired. Qualification helps a valuer to understand complex and difficult situations and will go a long way in adding more value to the customers.
It also makes sense to look for valuers who use the most techniques and tools for valuing the property in question. They should also use the most modern methods of valuation depending on specific needs and requirements. It is also vital that modern day valuers make use of the internet for the benefit of customers. It is always better to use the email while communicating with customers. This might look at bit out of place but even today many valuers continue to use the conventional mail system for exchanging information and documents.
Last but not the least a good property valuer should expand his horizons beyond property valuation and also offer other types of valuations too.