Posted on May 18th, 2022

Property valuation helps in determining the asking or sale price of a property. Read this article to get an insight into the purpose and benefits of Property Valuation.

Why is it important?

There are a lot of reasons why you should get your property valued. From providing a competitive and fair rate for your property to calculating different taxes on it, you can accurately do everything once you get your property valued.

For Buying or Selling a Property

Before buying or selling a property, it is essential to get it valued. The valuation can help you to understand the fair market value of the property.

A property valuation professional will visit your property and assess its current worth in the financial and real estate market, considering all the factors that determine a property's value.

To Rent a Property

Property valuation will help you determine the fair and competitive rent for your property if you are looking for tenants.

You will have to provide an accurate cost to your possible tenants. The suitable rent is usually 6-10% of the estimated price of the property.

To Mortgage a property

If a buyer wishes to seek a loan against the property as security, valuation is necessary in such a case as well.

The estimated price of the property considerably influences the amount of loan.

To Transfer a property

In case an individual wants to transfer their property to someone else, they will need to estimate its value first. The worth of the property will decide the stamp duty.

For taxation purpose

There are various taxes on property like wealth tax, vacant land tax, ground rent tax, property tax, municipal tax, etc. which are to be paid to the various departments of government. While calculating these taxes, the estimated value of the property is taken into consideration.

Compulsory Acquisition

If an individual or organization declares bankruptcy, then their properties can be acquired. In such cases, before acquiring or auctioning off the property, its valuation is done. This helps to determine factors like the base price for the auction.

Conclusion

All in all, the above article concludes that before carrying out any financial transaction related to the property, it is advisable to get it valued. A valuation can help you understand the property market's current trends, calculate taxes related to your property, and always crack the right deal for your property.

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