What is a property valuation?
The process that determines the economic value of real estate is property valuation. It usually strives for fair market value but cannot be equal to the sale price as the owner may sell the property right away due to financial crises or other factors.
The property valuation in Singapore aims for the buyer to provide information on the prevailing prices of the property. It also protects you from fraud and scams.
Why is property valuation important?
Valuation of property is needed to bring out the estimation of the price of the property. It may differ from your negotiations. That is why property valuation is the starting point for negotiation. A well-established real estate company under Jeremy Tan to create success stories by bringing out the best price for the client by upgrading and restructuring the properties with set strategies.
How does the valuation of property work?
- Firstly, by submitting your updated documents related to your property.
- Onsite visit and evaluation of the property by certified property evaluator
- Measurement and assessment of the property to check the construction quality with the collection of property images for further reference for internal and external inspection
- Assessment of location like facilities nearby, institutes, and airports that will bring up the valuation of the property
- Lastly, Property valuation in Singapore prepared for the final draft report containing a calculated valuation figure that will compare sales and images description of the property.
Benefits of property valuation:
- Having a proper property valuation prevents the buyer and sellers from scams. Expert property evaluators guide and aid the client in a better decision about a property.
- A buyer can access the pros and cons of the property through the final valuation from the report collected by the property evaluator.
- Correct evaluated property can be beneficial to getting appropriate insurance against the damages and losses.
- A property valuation will help you sell the property owned by establishing a good market with a price on returns and investment.
- Property valuation helps in accessing the viability of the potential development projects.
- The valuation of the property helps fix the final worth and rent trend prevailing in the locality you like to purchase.
- Lastly, property value is crucial for the taxation process based on the approx price of the property.
Methods for accessing the property valuation in Singapore:
- Direct rental comparison:
This method helps rental comparison quickly and easily, including residential or specialized commercial properties. It also involves and adjusts the contractual rental evidence to find the perfect market value of the property.
2.Method of profits:
An expert like Jeremy Tan, who works for the clients’ portfolio with a tailor-made strategy, helps in the best capital value of the property. The profits method calculates the higher value of the property if you are the owner of the income-generating property. It can also apply to residential properties in Singapore.
3.The residual method:
This method allows developers to specify an affordable price for the land. This method is simple and intuitive. You may have to deduct all the costs from the construction like materials, labor, etc. It also requires profit that induces the developer to take on the projects.
Conclusion:
An expert and certified property evaluator will gather all the info on the property and help build a property valuation. They also research and examine the property and report on the property. These will help buyers decide the viability of the investment in your property. It is crucial to have the important information on property valuation immense.
