What exactly is property valuation and why is it considered so very important every time a property is bought or sold? This is a question that we often come across whenever there is a need to buy or sell a property. One has to bear in mind that property buying and selling is a complicated matter. This is because of the simple fact that the stakes involved are quite high. Property deals could touch thousands or even millions of dollars. Hence, all the stakeholders would not like to leave anything to chance. To ensure this they are ready to take help from as many sources as possible. Further there are some clearly laid down rules and regulations by the authorities which should also be adhered to when a property is either being bought or sold. Since there are many legal implications associated with it the entire ownership process has to be carefully treaded.
Of the many steps and processes property valuation is considered to be one of the most common and important too. One needs to understand the main purpose of property valuation to have a better idea about its importance. The main purpose of property valuation is to ensure that all the stake holders get a clear idea about the fair value of the property. This is very important because it gives them the confidence that they are entering into a contract with the right commercials. Buyers will be sure that they are buying it at the right price and sellers will be comfortable that they are getting the right value for money for the property.
Further we should also keep in mind that there are also some legal implications as far as these valuation reports are concerned. When it comes to calculating property tax, most government and revenue officials go by the value of the property that is declared by the property valuer. in the same light, whenever there is a need to work out the stamp duty payable, the valuation reports come in very handy. Banks and financial institutions decide on the mortgage loan amount only after they have a feedback on the value of the property from a certified valuer. Further, experienced and professional property valuers can handle any type of complicated valuations, whether it backdated valuation or valuation for government compensation purposes. Therefore the role of property valuers is very important and forms an important spoke of the entire real estate business.