The question is always asked: why would you waste your money getting a property valuation? There is no need, it’s not worth the paper it is written on.A property valuation allows a large degree of comfort due to its legal nature.
Lets examine what property valuation means and why you should consult a real estate company for your property valuation.
A property valuation is generally conducted on a request by you, or a lending institution (such as a bank) who is is looking to fund the purchase of a property.
Normally produced as a report, a property valuation includes property information – rates, size of the land and building, physical details on the construction and condition of the dwelling, details on any immediate issues that may need addressing – as well as information on comparative sales in the area.
Eight reasons why you should consider getting a property valuation before selling or buying:
1. To understand the difference between price and value. Price is what you pay the vendor. Value is what your property is worth and can be accurately assessed by a competent qualified valuer.
2. To guide your investment/buying/selling decisions. A property investment is one of the biggest decisions you will make, yet people make them without any objective advice. On the other hand, people always seek qualified financial advice when making other investment decisions.
3. For an objective assessment. A reputable valuer is objective, an estate agent acts on behalf of the vendor. The aim of an estate agent is to get the maximum price for the vendor.
4. Personal attachment can cloud judgment. Everyone forms emotional attachments to the homes they live or a property they wish to buy, which can affect how much they believe they are worth. An independent valuation can provide some clarity and prevent unrealistic expectations. If you are selling, a valuation can provide a good idea as to what you can realistically expect it to sell for – it may in some cases be more than you think it’s worth.
5. A valuation is a legally binding document and so can be a valuable document when negotiating with buyers/vendors and if any disputes arise.
6. Prevent any financing shocks. This is particularly an issue if you are buying an apartment off the plan or a house-and-land package, where the price you pay may be affected by rebates, incentives, developer profits, marketing costs and a change in value over time. A lower valuation may require a buyer to dip into the hip pocket or be forced to take out lenders mortgage insurance.
Article written by Adegbonmire and associates