Is Property Valuation an Important Component of a Real estate Transaction

We know that a house is the most important thing for everyone and one will never compromise with it. So if you are buying a house or want to sell your house then in both cases doing the property valuation process is never a loss process.

A question is always asked: why would you waste your hard-earned money getting a property valuation? There is no requirement for it and may not be legally required.

If you are thinking that property valuation involves huge expenditure, then you are wrong. It is an investment. By doing this, we find out the actual value of a property which is beneficial for you from various aspects. Whether you want to sell or buy the property or want to keep it on rent. The value of your investment property should be known to you.

So to know the valuation of your property, take the help of a property surveyor to find out the fair value of your property.

There are various reasons why a property is being valued. Some of them are using it for taxation purposes, buying or selling of property, wealth tax, bank guarantees, home loans, to mortgage a property, property transfer, will and testament, acquisition by the authorities, auction, stamp duty, rent and depreciation, capital tax calculation, divisions of property, etc.

Advantages of Property Valuation

Buying or selling of property:

Property valuation is important when buying or selling the property. Even if anyone wishes to rent out his property, the valuation of property becomes important. The rent of a property is usually 8-10% of the estimated price of the property.

For transfer of property:

In case a person wants to transfer his property, he/she will need to estimate the value of the property. On the basis of the value of the property, the stamp duty is calculated.

To mortgage a property:

If a buyer wishes to avail loan against the security of property, the valuation of property becomes important. It is also done in case of a loan for construction of a building is required.

Acquisition by the authorities:

The valuation of a property becomes important when an individual or an organization declares itself bankrupt and a compulsory acquisition or auctioning off the property is done.

For taxation purpose:

Property valuation becomes important when someone calculating the tax on property. Tax includes municipal tax, rent tax, wealth tax, property tax, vacant land tax, etc.

How does property valuation help?

It helps us to know the fair value of the land or building. At the same time, you came to know the improvements that can help you to increase your property value. In return, you will get a certificate, proving the fair value of your property admissible in a court of law.

How much do I have to pay for the property valuation?

There is no standard pricing fixed for property valuation. It depends on the location, kind of property, size as well as the kind of certificate/documents you require, the pricing may vary.

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