Real estate valuation is important because it allows you to determine the value of certain parts of the property for certain events for certain purposes. It is must to get the valuation and advisory services for residential property owners.
Market value is described as the estimated amount for the property to be exchanged between two willed parties, the buyer and seller, on the day of the valuation in an ongoing transaction after proper marketing with skilled, thoughtful and unstressed action.
In this transaction, the two parties do not have a special relationship with each other, which can affect the determination of property prices.
There are many methods of property valuation. There are actually five. One of them is using the comparison method. It contains an analysis of recent transactions related to your property available in the market between your property and other similar properties.
Usually used when a significant number of transactions have recently taken place so we can show property values.
Value adjustments must also be made based on certain factors, such as Post-purchase costs, location, and physical property.
The income method is another method that uses comparisons to estimate the value of your property. But this time, similar rental properties are compared. With this method, the present value is estimated to depend on its future use against the future. Future benefits may include facilities such as shopping centers, supermarkets, and new MRI stations.
Another method is the cost method. This is based on the theory that people do not give old buildings more than the cost of building replacement properties that offer similar functions and utilities. This is often used to value property with little or no market transactions such as schools and churches.