A building or property valuation ensures a professional assessment of the value of a property or building, typically conducted by qualified valuers or appraisers. The valuation is usually based on various factors such as location, age and condition of the building, property tax, rental income potential, and market demand for similar properties.
A property valuation service has a team of experienced professionals determining the property’s value. The valuation is based on the property’s location, condition, size, facilities, and security.
Remember, building valuation is a specialized job. As first-time buyers, you should only trust credible services in property matters. All renowned valuation services have accreditations from local and international regulators.
Importance of Building Valuation Service
Wondering what are the importance and benefits of property valuation? An accurate property valuation helps a buyer to give a sense of what they should pay for an asset or business, and gives potential sellers a concept of what they should ask for their items.
A building valuation service can benefit its property owner in the following ways:
1. Accurate Property Value Determination
A valuation service provides the property’s actual market value, which is determined by sales comparison, income, and cost approach. After learning about the market value of a property, you can make plans.
The value in real estate marketing depends upon numerous factors. It is challenging for laypeople to compute all variables and set a market price. The below chart shows the variables required for property valuation:
So, always hire professionals for this job.
2. Property Sale/Purchase
An accurate valuation is essential for property sale and purchase. As a seller, you want to avoid inflating prices; it will repel the customers. Similarly, a low price will reduce your profit, and valuation services allow you to set the right selling price.
Similarly, you want to avoid paying extra money as a buyer. You should always seek a detailed building valuation report to analyze market trends so that you buy the property at the right sale price.
3. Rental Income
Property valuers help in asking tenants for property appraisal. As a rule of thumb, the rent should be equal to or no less than 1% of the total property price. So, if you have the latest property valuation, you can convince tenants for revised rates.
To know the rents you can always get a price by comparing a property with a recently rented property.
4. Tax and Insurance
Taxes and insurance policies are directly proportional to the value of the property. After knowing the actual value, you can target the right insurance plans. You can also decide about seeking a mortgage or loan from the bank.
5. Improved Negotiations and Transactions
Building valuation services prove invaluable during property negotiations. They can tell the current and future worth of the property. You can plan the negotiation and decide how much leverage you have, which helps close transactions.
6. Increased Marketability and Desirability of the Asset
A valuer highlights the pros and cons of a particular property. Based on that, you can launch a marketing campaign focusing on the positive sides of your land. You can also improve the flaws to improve its outlook, which helps raise the overall property valuation for buyers.
How to Select the Right Building Valuation Service?
When it comes to the UAE, there are numerous building valuation services available in the market. Since all companies claim to provide the best solution, you have to find the perfect match for you.
To do that, it is advisable to have a clear vision of what you want from a project. A clear vision helps in collaborating with the right people.
We propose this simple formula to select the exemplary building valuation service.
- Make a list of probable candidates. The services can be found online, with peer recommendations, and by visiting their local offices.
- Check their local and international certifications. It determines the authenticity of a company and certified property valuers.
- Ask them about their previous projects. You can go a step further to reach their end-users as well personally.
- Check the educational qualification of the staff. Also, make sure that the valuers have strong analytical skills. In property valuation, analytical skills are more important than formal education, and they help find the right price according to market demands.
- Have a meeting with the valuer to see whether you two are compatible. It is essential to entrust them with your property valuations.
- Ask for a detailed written report after the valuation. The final report should highlight current property value, pros, and cons. You can also ask the valuer to include suggestions for future improvements in the final property valuation report.
You can use this formula to judge any real estate valuation service. If you are an Emirati looking for an accurate valuation or online real estate valuation services of any residential or commercial property, get a property valuation done by Land Sterling’s property valuation services. We are the region’s best valuation team with experience with more than 10,000 projects under our belt.
Property valuation helps in determining the accurate price of a real estate property. With this knowledge, you can make intelligent decisions about your property. Hiring a professional firm helps you find the right value and set up an accurate property sale/purchase price.
It is also helpful in mitigating the risk, safe financial transactions, and deciding about insurance plans, generating the final valuation report and loans from a bank.
Land Sterling provides professional building valuations services to many properties across the UAE. We have an experienced team certified with The Royal Institution of Chartered Surveyors (RICS), The International Valuation Standards Council (IVSC), and The Saudi Authority for Accredited Valuers (TAQEEM). Our team has valued property worth 200+ Billion AED since its founding. To reach out you can also request a Call back for the valuation of any property across the United Arab Emirates.
We hope this blog will help you understand the importance of property valuation and the advantages of the property as security.