The role of a property valuer is often not understood by many customers. While lack of knowledge is the main reason many customers are of the opinion that property valuation is something than can be done by the customers themselves. This is not exactly right because of a number of reasons. Valuing a property and coming out with the fair market value of the same is complicated and difficult to say the least. There are a number of factors that need to be taken into account and quite a few inputs should also be available for arriving at the accurate value of the same.
Apart from the above it also has to be borne in mind that property valuation has also other implications to it. A professional valuation report is the basis on which property valuation taxes are calculated. It also forms the basis on which stamp duty agreements are calculated. Hence, there is no doubt that a property valuation reports is much more than a piece of paper. It forms the basis for many decisions being taken.
Keeping the above in mind here are a few important points to be kept in mind while choosing a property valuation professional:
• A property valuation report to begin with must have a certificate which permits him or her to do the job that he or she is supposed to do.
• Further, a good property valuer is one who also has a formal qualification on the subject matter. Though not mandatory, most customers are happy dealing only with valuers who possess a formal qualification.
• Property valuers are supposed to handle almost any type of valuation under the sky. It would be not right to straight jacket the role of property valuers just on valuation of real estate alone. They should be able to value both movable and immovable assets, though their main focus should be on real estate valuation.
• Good property valuers are those who are able to offer different methods of valuation depending on the specific customer need and requirements.
• A good property valuation report should contain much more than the fair market value of the property. It should talk about the infrastructure development in the locality, the availability or absence of various amenities and facilities.
• Last but not the least, successful property valuers are those who are always looking at ways and means to add value to customers. Hence, offering online valuation is something that could be very useful to customers.
There are a number of customers who are under the impression that property valuation is something that is not very important and significant. Such a thought is not exactly based on facts but is more of opinion. This is because property valuation is an extremely difficult and complicated job though it might look very good from the outside. There are a number of inputs and information that should be taken only after which the actual valuation is possible. Hence, to conclude that valuation is a simple task that can be handled by the customers themselves is based out of lack of information rather than anything else.
Now let us try and find out why valuation is considered so very important. Whenever a property is bought or sold, the transaction is said to be complete only when the ownership of the same is transferred from the seller to the buyer. There are number of steps, formalities and procedures that have to be followed. These are referred to as conveyancing. Property valuation is considered to be one of the most important procedures because it is not only about identifying the fair market value of the property that is being bought or sold. There is much more to it when it comes to property valuation. A professional valuation report does certainly contain the fair market value of the property but additionally there are quite a few other pieces of information that are extremely useful to the buyers in particular.
For example a good valuation report also makes a mention about the quality of people who make up the neighborhood in which the property is located. It also throws some light on the quality of infrastructure development, the absence or presence of various amenities and facilities. These small pieces of information though subjective in nature are extremely useful for the buyers because it helps them to take a final call whether to go ahead with the purchase or not. Further, a good valuer is one who is able to help their customers with each and every type of property valuation that one could think under the sun. Starting from simple valuations to complicated backdated and retrospective valuation there are literally many types of valuations which are done by these professionals. Hence, there is no doubt that valuers are very important spokes that keep the wheels of real estate buying and selling quite efficiently.
When you decide to buy a real estate property, there are quite a few important things that you should keep in mind. First and foremost, you have to spend some time, effort and money in identifying the right buyers and sellers as the case may be. Once this has been done, if you are a buyer you have to find out ways and means by which you can fund the entire purchase. It is quite normal that eight out of ten buyers will have to seek help from banks for funding their real estate purchases. As far as sellers are concerned, they too may have to ensure that the current mortgage loan outstanding are cleared only after which the charge against the assets will be released.
While the above steps refer to the initial stages, once the buyer and seller decide in principle to get into a mutually agreeable transaction, there are a number of processes and steps that have to be followed. These steps are extremely critical for ensuring smooth transfer of ownership from the buyer to the seller. There are a number of complicated processes and steps involved and there are also many professional s involved in the entire process. Hence, it is not very uncommon for customers to take the help of professional conveyancing companies for getting the job done. These professional companies have a team of lawyers, advocates, real estate appraisers and valuers and also other professionals such as document specialists, administrative staff and other such professionals. The entire team has to work in perfect unison for ensuring smooth, timely and perfect transfer of ownership from one person to another.
Now coming to the work flow, it usually begins once the customer agrees in principle to go in for conveyancing, whether he is a buyer or seller. Once this is through, the conveyancing company sits with the customer and understands his requirement. The company also often sends a questionnaire which the customer has to fill up. It usually talks about all the relevant details that are required for smooth conveyancing. Once the questionnaire is received, the conveyancing company sends a formal offer letter outlining their duties and responsibilities, the time lines and the budget that would be required for completing the job. After receipt of approval from the customer, the lawyers and advocates get into the act and verify the property documents from the legal point of view.
The role of property valuers is also of paramount importance here. Though their main job is to ensure that the buyers and sellers get the right information about the fair market value of the property, they often have to go much beyond their normal call of duty.
Buying and selling a real estate property is not the same as it is buying other immovable or movable properties. While immovable and even movable properties apart from land can be easily bought or sold, when it comes to real estates there are a number of important points that should be kept in mind. There are many legal implications that are involved and the same have to be addressed before ownership can be transferred from one entity to another. Secondly, there are also quite a few statutory and compliance related issues that also have to be taken in to account. Unless they are completely complied with it is quite possible that the authorities concerned may not permit owner transfer from one entity to another.
While many customers might argue that it is possible to go through the various process on their own, when it actually comes to doing it on the ground there are a number of problems. Most of the customers would not be aware of the various rules and regulations applicable as far as sale, purchase or transfer of property ownership is concerned. Further, the processes involved are highly complicated and complex. It is quite likely that ordinary customers would not understand these processes. Hence taking these facts into account it is always better to take the help and assistance of professionals to get the job done.
Amongst the various steps property valuation is very important. It is about getting to have a clear idea about the right idea about the fair market value of the property that is being bought. Though the market could give us an indicative rate, when it comes to having a legally enforceable price for the property then having a valuation report from a valuer is extremely important. Further, apart from helping us with the fair market value of the property in question, there are some other bit and pieces of information provided by valuers which could also be very useful. For example any good valuation report will also make a mention about the quality of people in the neighborhood, the state of infrastructure development in the area and also the availability of facilities and amenities in the place. All such information will certainly help the buyer to firm up his buying decision.