What is Property Valuation?
Property valuation is an estimation of a property’s market value depending on its size, location, outlook, condition, and other real estate factors. The valuation should be done by an experienced surveyor capable of computing all on-field variables and then, knowing their meaningful contribution to overall property valuation.
If you are a UAE resident, you should always know the current value of your property. Since the UAE is the hotbed for the world’s real estate, things here change quicker than anywhere else. The property prices in Dubai rose by 9.5% during 2021-2022 November. So, if you haven’t got the latest value of your property, you should immediately get it done. Reach out to Land Sterling for property valuation services across UAE.
Property Valuation: 10 Reasons You Might Need One.
Property valuation serves multiple purposes. It helps you decide on selling/buying prices, rental income, and tax payment modes.
This section here highlights the 10 major reasons for property valuation.
1. Property Sale
Property valuation is an essential element of a property sale. If you know the actual worth, you can negotiate better. A valuation has to be correct, an overvalued property doesn’t attract customers, rather it leaves a bad taste. On the other hand, an undervalued asset reduces your profit.
So, always hire a professional for an honest valuation to get a good profit on your investment.
2. Renting the Property
Property valuation provides a strong base for deciding the rents. Once you have a documented valuation, you can convince the tenants to pay.
As a rule of thumb, a general property rent should be about 5-7% of its total worth.
3. To know Its Pros and Cons
A property valuation determines the pros and cons of your property. For example, if your house is in an urban area near markets, shopping centers, public schools, and a metro station, you would know exactly how much it raises the property price. Similarly, if the house is in a narrow lane with an outdated frontal look, it will slash its worth.
Once you know both sides of the coin, you can make informed decisions, highlight the positives in the final meeting and make justifications for the downsides.
4. To Predict Its Future Worth
A detailed property valuation should predict the future worth of a property. For that, it is important to hire an experienced firm, already working nearby. Local firms are likely to have access to town planning and municipal departments, which helps in knowing the future worth of your location.
With property valuation, you know the weaklings of your property. After that, you can make a revamp plan to improve the front gates, wall paint, fixtures, or sanctuary facilities. All this can make a significant difference in overall valuation.
6. For Taxation
Although the UAE is known for being tax-free when compared to other developed regions of the world. However, still you have to pay cumulative taxes nearing 8% of the total worth
Knowing the property valuation is the key to calculating and then planning for tax payments.
7. For Property Transfer
If you want to transfer your property to anyone, you need its valuation. It helps in calculating the stamp duty on it.
8. For Mortgage
If you want a loan against your property, you should know its current worth. After that, you can submit it as security.
9. For Insurance Purposes
Any property insurance requires property valuation. So, you neither overpay the premium nor settle for less.
10. Compulsory Acquisition
A property valuation is necessary in case of bankruptcy. If a person or a business gets bankrupt, all their assets are confiscated and then auctioned. Property valuation helps in setting the base price of these assets.
How to Hire the Right Firm for Property Valuation?
Choosing the right firm is key to the right property valuation. You can’t trust rookies in matters of real estate, a firm should be selected after a thorough investigation of its credentials.
Here are a few things which you should consider before hiring:
- The firm should be experienced, and capable of showing flagship projects.
- The firm should possess relevant certifications.
- Ideally, the firm should be local.
- The firm should have an excellent reputation in the market. You can go a step further and collect customer reviews.
- The surveyors should be certified, with proven on-field skills.
- You should check their previous property valuation reports. It should be comprehensive, covering all the key aspects of a property.
If you want an evaluation of any commercial or residential property in UAE, take a look at Land Sterling real estate Valuation. We have a team of Royal Institution of Chartered Surveyors (RICS), International Valuation Standards Council (IVSC), and Saudi Authority for Accredited Valuers (TAQEEM) surveyors for providing you with fair accurate valuations throughout the MENA region.
Property valuation tells about the current worth of your property. Once you know it, it is easier to decide about selling, renting, revamping, future worth, taxation, mortgage, insurance, and other important aspects.
Selecting the right firm is critical for correction evaluation. If you are a UAE resident, contact Land Sterling for the valuation of any property in the MENA region. We have a team of certified surveyors with experience in more than 10,000+ properties across the region. Click here to find us.
Frequently Asked Questions
The 5 factors for housing valuation are location, condition, functionality, comparative sales, and motivation behind selling.
The most important factor is the location. Nothing raises a property value more than its whereabouts.
The thing which affects the most is delayed maintenance. It can cause permanent damage to critical areas like walls or foundations, which can ruin the entire valuation.