A property valuation is of utmost importance for buyers and sellers. When buyers opt for a property valuation, they get a fair idea of how much the property is and hence they can make an offer accordingly. For sellers, opting for a property valuation means they no longer have to wonder how much is my house worth, as a property valuation will give them a figure that is very close to the real value. Whether you are a buyer, a seller, a property investor or an estate agent, here is everything you need to know about the importance and benefits of a property valuation.
Helps weigh the pros and cons of buying a house:
As a potential buyer, you might walk into a house and fall head over heels in love with it. However, the roof could be falling apart and if you decide to fix the roof, you’ll have to spend thousands of pounds over your initial budget! That’s when a property valuation comes into play. For one, a property valuation tells you everything you need to know about the property, from market value to structural feasibility, from rental rates to major damages. Once you have the property valuation, you can weigh the pros and cons to figure out whether or not this property is right for you.
Helps with future sales:
If you are a property investor who is looking to buy property to sell in the long term or the short term, then a property valuation will be highly beneficial for you. For one, if you decide to sell the property in the short term then you will have a fair idea of the market value, hence allowing you to set a fair price point where you can earn maximum profit while maintaining a good market rate. Also, you can present the property valuation report to potential buyers and use it to your advantage during negotiations.
Helps ensure you pay the right price:
When you opt for a property valuation, you get a fair idea of what the property is worth. The property evaluator will take various factors into account such as the location of the property, the structure of the property, the age of the property, the size of the property and so on before coming up with the value of the property. Usually, the value is very close to the prevailing market rate, with a 5 to 10 per cent difference. When you get a property valuation, you will easily be able to negotiate a good deal and make an offer that is likely to be accepted by the seller. Also, if the seller has quoted a selling price that happens to be lesser than the value, you might just end up getting the deal of a lifetime!
Helps set the right selling point:
As a seller, it is very important to choose the right selling price. If the price is too high then you might drive away potential buyers and the property might sit on the market for months. On the other hand, if the price is too low then you might end up losing money on the sale of your property. Alternatively, if the price is too low, potential buyers might feel that there is something fundamentally wrong with the property. Hence, it is always a good idea to opt for a property valuation before listing your property on the market as that will give you a fair idea of what your property is worth.
Helps get the right property insurance:
Every seller and property investor knows that buying the right property insurance is very important to protect your property from any unexpected damages. Once you get the property evaluated, you can get the right property insurance without overvaluing or undervaluing your property. Essentially, the higher the value the higher the insurance premium that you have to pay and vice versa. So, if you actually know the worth and value of your property, then you can get the right insurance for your property without overpaying while covering all your bases.
Helps calculate taxes:
A property valuation is required to pay various taxes such as land tax, ground rent tax, property tax, municipal tax and so on. Usually, while buying a property, the taxes that are supposed to be paid to the government are paid on the basis of the property valuation. Apart from this, it is important to get a property valuation done if you want to transfer your property. The stamp duty for the same will be set based on the property valuation.