Property Valuation, real estate valuation or land valuation is a way of determining the current worth of a certain property, whether it be residential or commercial. Most real estate deals involve valuation because they happen infrequently and each property is unique, like corporate shares, that are traded day after day. This is why, if you buy property and then sell it within a year, you must have an idea of the real value of the property before you even attempt to sell the property at a profit. You must be able to give an accurate value of the property in order for a good deal to be made. Have a look at Property Valuation.
This can all be done by taking a look at the real value of the property or by using the formula given by many properties. One formula used is known as the replacement cost principle. This is a simple formula used in determining how much the property would be worth if all its parts were replaced. When this formula is used to calculate the real value of the property, it usually gives a figure that is lower than what is given by the buyer’s offer. The reason for this is that the buyer may offer a price that includes repairs, improvements, or other additions, and if the buyer gets a lot of money for the property, it may be a good deal.
There are a number of different sources that can give estimates about the real value of a property, including government departments, banks, realtors, appraisers, and other people who specialize in these things. These sources can give a number of different values based on the information they have and there will always be some that are higher than others. It will be very important to understand what the sources are telling you and how they arrived at their figures before deciding to buy a property or not. In most cases, if you do decide to purchase property with a low value, the difference between its original value and the estimated one will still be quite large. Therefore, you should not be overly worried if you purchase property with a low value and then find that it sells for a higher amount in a year or two.
Sydney Property Valuers
16/329 Pitt St, Sydney, NSW 2000
Phone No: (02) 8599 9840