Well, there could be numerous reasons for your house or property valuation. The knowledge becomes more significant if you are heading to buy or sell a property. But, before you take your first step into that direction, you are supposed to know certain facts about that matter such as what the house or property valuation is and who are the right guys to do that for you, and if there is really a genuine need for the house valuation. In this article, we would try to answer all of such queries.
What Is Meant By A Property/House’s Valuation?
It’s very much necessary for you to know the real worth or value of your house/property. But, there are certain parameters that help you determine or get to know the actual value of your house. To begin with, it’s primarily the net worth assessment of your house or your property. The assessment is based on certain basic parameters that either enhance the worth of your property or ruin it. They include but are not limited to
- Basic amenities
- Payment mode/terms
- Commercial aspects
- Area of the property
Just like any other profession, house valuation is a professional job that needs a professional to carry it out. The professional house/property valuation personnel will apply certain professional formalities to get to the realistic assessment of your property. The step in this process include but are not limited to
- Taking notes of the important points
- Taking photographs of the property from different angles
- Putting all of this info together and preparing the Final Valuation Report.
A house valuation report prepared by such a professional surveyor could be of great help for you while you want to put your property on sale on a website, or while you want to part ways with your business partner dealing in the real estate world.
Who Is the Right Guy For House Valuation?
A Property Surveyor is the guy (or a girl) who will carry out your property’s valuation professionally. During the House Valuation, the Surveyor might consider certain necessary points while taking notes required by the Final Valuation Report. The points might include
- Storage of the property
- Size of the property
- Wear and tear effects due to time and weather factors
- Architectural aesthetics of the property
For a genuine house valuation, the guy might take into account the prices of the houses located in the vicinity or the property sold out lately into that area. They might go back up to 15 to 20 days to check the selling/buying prices of properties located in that area.
Mortgage Vendor’s House Valuation Vs. Market House Valuation:
White the sole purpose of the valuation carried out by a mortgage vendor and a professional surveyor is the same, that is, to get to know the actual valuation of the property, yet there is a difference between the two. Normally the valuation is based on certain important factors such as
Where the house valuation carried out by a professional is based on so many other factors including the above-said ones and leading to a thorough and comprehensive house valuation report, the mortgage lender’s house valuation bases his/her house valuation report on certain parameters only and the only purpose of this valuation are not to get to the actual valuation of the property but to consider the property to be exploited for the mortgage lender’s benefit only. Such reports normally don’t exceed more than 3 pages.
A mortgage lender just wants to verify if your property is in agreement with your claims for its worth. Normally, their valuation is pretty less than the valuation carried out by a professional surveyor and they do it on purpose. The only purpose of this less valuation is to be in the safe corner in case of default of the borrower. Also, such reports are prepared with an intention to safeguard the interests of the lender to give your mortgage. So such reports are not the true reflection of your house or property’s actual valuation.