Often, in property transactions, vendors expect a bigger price than the existing value, agents quote a higher price for their personal benefit turning property transactions into raw deals for buyers. Property valuation will shield you from exaggerated deals, and land valuation can protect you from the effects of uninformed property/land transactions.
While deciding to purchase an immovable property, first get a valuation done for it. The exact value of the property can be deduced only by an official property valuation. In an official land valuation, the forces of demand and supply operating in the market, like type of property, construction quality, location, availability of local infrastructure, maintenance are all taken into consideration before the market value is decided. A comprehensive valuation report indicating value of the property and also the basis and manner of valuation can be obtained from an approved valuer. Only, professional valuers who are knowledgeable and impartial should be used to assess property. Usually a lawyer does the valuation so that a stamp of legality can be given to the property and no disputes arise thereafter.
Valuation of property comes with several advantages. In case the property needs to be used as a security against a loan, only property verified by a Government approved valuer would qualify for approval. Many banks insist on valuation certificates before issuing loans using properties as security.
Valuation and Certification also becomes essential when the correct value of the property has legal significance in instances like will statements, insurance papers, business balance sheets etc.
One more advantage of official valuation is that, knowledge of exact value of the property can be a useful negotiating tool when selling.
An estimation of your property’s current market value will tell you about:
The existing demand for your property in the market
Market activity in your area, for your type of property
Percentage of the asking price the property really sells for
How much to pay for a particular piece of property
How to control your sale and reduces your dependence on agents & intermediaries
The best price for your house, making negotiating easier