Do you have an entrepreneurial mind? Would you like to invest your money into something profitable? One way to build wealth in a more secure way is to invest in real estate. But before getting into the business, you have to be knowledgeable in property valuation. It is a report that includes important information about a property and comparable sales in an area. In case you’re looking for a professional residential valuer, Brisbane has numerous service providers that can help you.
It pays to know certain points and concepts covered by property valuation:
Market Value of the Property
This is the price the property brings in a competitive market. The price a property actually sells may not be the same as its market value. The value may be higher or lower than the price or the other way around. Foreclosure, the need for emergency funds, private sale, flaws in the property, etc. are the reasons that lead a price to fall below its market value.
Rights to the property should be easily transferred to the buyer. There should be no underlying issues regarding the rightful owner of the property. This is to make sure that the new owner can have the land title without delay.
Process of Valuation
The valuer visits the property to check on its condition, structure, layout, etc. He or she takes pictures highlighting the property’s features. Likewise, the valuer considers planning restrictions, zoning, and access to transportation. After which, he or she compares attributes with the recent sales in the area before deciding on its market value.
Increasing Property Value
Owners can make some renovations to increase the value of their properties. They can do some tidying up and room makeover, or add some fixtures to make them more presentable.
Real estate agents appraise a property based on sales in the area and experience. A licensed valuer bases his or her report on facts. If the sale price doesn’t justify the market value, the sale of the property may not push through; otherwise, there would be a need for renegotiation.
Admittedly, putting your money into more than just a savings account like an investment is risky. To make sure that you get your money’s worth, you should educate yourself about every important thing you need to know.