What exactly are the reasons for valuing properties? Is it a necessity or an option that can exercised when needed? These are common question that we come across from many customers. First and foremost valuation is a must in only certain situations. For example when you are planning to buy or sell a real estate property you could need the services of professional valuers. Again if you have a factory, office, commercial property or even immovable assets such as stocks, shares and commodities you could need a valuer to find out the fair market value of the same. Hence there is no doubt that there is frequent need to hire these professionals thought they might be mandatory only when it comes to buying and selling of homes and other types of properties.
Now coming to the various points to be taken into account while valuing properties, here are a few points that could be helpful. First and foremost, there cannot be a straight jacket rule for valuing of properties. Though there could be some general guidelines the actual valuation method and type of valuation would depend on specific situations and needs. Hence, identifying the need of the customer is the most important factor when valuing a property.
Talking about general guidelines, here are a few that could be considered very uniform. Location is the biggest factor that contributes to the value of a property. Hence, valuers take location as the most important input while valuing a property. The better the location, the higher will be the fair market value of the property. The next point that needs to be taken into account is the age of the property. While the land will certainly continue to command higher value as years go by, the construction value would depend on its age. New properties will certainly command higher rates.
The next important factor that could impact the valuation is the size of the property. A bigger property will most certainly fetch a higher valuation. Apart from these general parameters there are other factors too that could impact the valuers report. The absence or presence of easements, covenants and other encumbrances will have a negative impact on the property. In the same light properties that are eco friendly and environmentally safe also might command higher rates. Last but not the least, the quality of gardens and backyards could also play a role in increasing the value of properties by a few thousand dollars.