Benefits of Property Valuation Services

1. Benefits of Property Valuation Services

2. What are the benefits of property valuation services? There are several benefits to using this service. • Sellers or buyers can take advantage of property valuation services in the following ways:

3. Measure the current market value of the property. • Give a detailed report of the property. • Highlight the benefits of the property. • Highlight the geographical advantage. • Get expert advice and pointers to sell your home. • Determining the feasibility of future development projects • To determine the profitability and income potential of the property.

4. Valuation Techniques • When conducting a property valuation, a property valuer may use a variety of valuation methods. • To arrive at the valuation figure, the property valuer typically uses the comparative method, investment method, and profits method. • Some properties may require a more detailed analysis to provide additional flexibility in the property's end value. • The five methods of property valuation are listed below:

5. Comparative Approach • This methodology, also known as Inferred Analysis of Property Value, compares the prices of properties in the same area. • The final value of the property is calculated using the values of nearby properties. • A close examination of similar buildings/properties with matching characteristics and dimensions is performed using this method. • Whendetermining the market value of a residential property, the comparative method is commonly used.

6. Profits Approach • Profits Methods are frequently used when valuing commercial real estate. • This method is used to determine the market value of properties such as restaurants, rental office space, malls, and hotels. • The valuer determines the property's market value by averaging the business's average operating income over the previous three years. • The profit and loss statement of the company is used to secure this figure.

7. Residual Method • This valuation method is useful when an investor, developer, or owner is determining the value of a property for future development. • The Residual Method helps in examining the viability of a property, whether it has potential for development, redevelopment, or rental purposes. • Whencalculating the property value, the gross development cost, building cost, property builder/developer profit, and fees are all taken into account.

8. Contractor's Approach • The Contractor's Method, also known as the Cost Method, employs the replacement value of the property technique. • This method is used when the Comparative Method and the Profit Method fail to provide an accurate estimate of the property. • Each construction component, cost of each construction, current construction techniques, land value, and reconstruction cost are all added together in this method. • To arrive at the final estimate of the property's market value, a representative depreciation figure is deducted from the previous number.

9. Investment Strategy • The Investment Method is a practical method of determining the market value of commercial properties. • Theproperty's market value is directly related to its income-generating potential. • This method provides an accurate picture by converting income earned (both present and future) from the property into an approximate capital sum. • The valuer in this case uses the discounted cash flow method, the future cash flows that the property owner will generate from the property.