Evaluation of a real estate property helps you find a current market value estimate of your asset. If you are looking to put your property on the market, without a proper valuation, you may end up pricing your property inaccurately. It can be either too high or too low.
Certified property valuation companies consider various aspects of your property before quoting you a reasonable estimate. This gives you the much-needed information about the right property price window to sell your property quickly and at the right price.
There are property owners who get misguided by real estate agents about the value of their property and end up selling their property at a lower price than its actual market value. If these property owners had valued their property by independent valuation companies, they would have received a proper valuation of their asset. The information would have enabled them to sell their properties at an accurate price.
Not knowing your property’s true value may result in you pricing your property too high. In this case, your property might end up staying on the market for a very long time as buyers would have access to similar properties at lower prices. If you are looking to sell your property quickly, you need to get your property valuated.
Property valuation is done based on three approaches:
The comparable approach
This is one of the most common approaches for property valuation. It compares the real estate properties with similar features and adjusts the property values according to property specifications and market demand.
The income approach
This approach is used for the income-generating properties and valuation is made considering the actual monthly/yearly income from the property. The net income of the property is obtained by eliminating the expenses (insurance costs, the agent, and the maintenance fees) from the gross rent generated by the real estate unit.
The cost approach
This is a real estate valuation method that involves the cost to build a real estate property. It estimates the price of the property compared to the cost required to build a similar property in the same locality. In this approach, the cost of the property is equal to the total construction cost and price of land, minus depreciation.
Interestingly, property valuation benefits the buyers as well. If you have your property valuated by a credible valuation company, it will assure the buyers that they are not paying more for your property. They will also be more willing to buy your property because it adds more credibility to your listing. It builds trust and attracts genuine interest for your property from potential buyers.
Property valuation is also quite beneficial during bidding as it allows buyers to bid with confidence. At letWizard we partner with a selection of third-party valuation companies that can professionally valuate your property and estimate its true market value. Sell properties on letWizard to gain high profits through true price discovery and get committed offers from buyers from all over the world.
