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Understanding Brisbane Property Valuation the layman’s way!

You are into the property market. Now, dealing with the estate financing, listing of real estate sales, doing your investment annals sis, getting property insurance and taxation for your real estate. Determining the asking or purchase of property could only follow a property valuation. To understand what Brisbane Property Valuation is some basics of property valuation are necessary. Some of the valuers will  adopt methods of property valuation and pertaining to the real estate in sales. What is that which determined the property value, actually? It is the present worth of future benefits arising from the ownership of real property.

The benefits of the property are really realized over a period of time unlike the perishable commodities. An estimate of Brisbane Property Valuation is therefore necessary. Estimates of property’s value take into consideration economic and social trends, as well as governmental controls or regulations and environmental conditions that may influence the four elements of value i.e. Demand, Utility, Scarcity, and transfer ability. Which means how desirable is the property, is there a capacity in the property to satisfy the needs of the buyers, how many other properties of similar kind can availed inside the city or within the vicinity and is it with ease that at a later date the ownership rights of the property can be transferred to another prospective buyer.

In terms of valuation, valuation is not which is equal to costing or price. Cost refers to actual expenditure for example the labor and material. Price is an amount that someone pays for something. Cost and price both can affect value. But they do not determine value. Value is quite a subjective matter. The sales prices could be for a property but the value could be significantly different. Suppose the owner is finding a serious fault with the house in terms of cracked beams, any time would fall down kind of scenario, the value of the house could be lower than the price. In terms of value of a property, an appraisal or an estimate made comes with a clear expiry date.

Since renovations and repairs or damages could change the who dimension of valuing of the house. Who does the reports? Any businesses, government agencies, individuals, investors and mortgage lenders when making important decisions regarding real estate transactions can do the valuation and print reports. The very goal of the valuation is to determine a property’s market value: the most probable price that the property will bring in a competitive and open market. There are Three basic approaches are used during this process to determine a property’s value; Method 1 – Sales Comparison Approach, Method 2 – Cost Approach, Method 3 – Income Capitalization Approach.

Accurate real estate valuation is important to mortgage lenders, investors, insurers and buyers and sellers of real property. While appraisals are generally performed by skilled professionals, anyone involved in a real transaction can benefit from gaining a basic understanding of the different methods of real estate valuation. However, valuation though is a combination of art and science it is formally valid acceptable unless a certified valuator does it. A buyer or seller is advised to hire a property valuator who is certified, graduated or a diploma pass out and registers with a reputed Australian institute.