Why Is Property Valuation Important
Property surveys may not be legally required but in order to do a due dilligence, they are a must. Most surveyors will do a property valuation for income tax purposes, capital tax calculations, wealth tax, rent and depreciation, property transfer, bank guarantees, auction, stamp duty, acquisition by the authorities, will and testament, home loans, division of property, etc.
When should you go for property surveys/valuation?
There is no law that states you should get your property evaluated by a professional before you sell/purchase it. This is more of a precautionary measure, to be safe than sorry in future. Customers often use professional help for a property evaluation, to sort out income tax-related matters. The same is also done before renting, bank guarantees, auctioning, stamp duty payment, acquisition by the authorities, preparing will and testament, availing of home loans, division of property, etc.
Who is a valuer?
A valuer is someone with a professional degree and a licence from the Institution of Valuers. These law-recognised valuers get licences from the state body before they start their practice. While a property brokers helps you understand the pulse of the market; those facts could be questioned. An approved valuer does everything on paper, citing facts. This document helps you deal with banks, solicitors and investors, etc.
How does property valuation help?
What is the value of the land or building? Are there any improvements that can help you increase the value of your property?
These are some of the aspects that valuers help you decide. You would also get a certificate, validating the worth of your property (and other assets) admissible in a court of law.
What do I have to pay for a property valuation?
There is no standard pricing for valuations. Depending upon the exact location, size, kind of property as well as the kind of certificate/document you require (short-form or long- form), the pricing may vary. Do note that usually, valuation services are tax deductible. However, even if it isn’t, the cost is far too less when compared to what you are getting in the form of an established fair price of the property.
Is property valuation a smart move?
In case you are a seller, a legal piece of document certifying the true worth of the property would be of great help. The buyer could in no way accuse you of overvaluation, and this also ends the scope for bargaining. Your property valuer could also tell you ways in which you could add value to your existing property. A tax depreciation schedule from a valuer can also help you minimise your tax burden. From a buyer’s perspective, valuations help them understand the risk profile of a said property. They can make a sound investment on the basis of such information.