There are many decisions that go into selling your home or business. Sometimes these decisions are made purely from an emotional stand point. However, there is one aspect that cannot be overlooked and that is how much your property is worth. You need to understand the importance of a property valuation before taking the plunge and selling.

With property valuation it is important to recognize the property climate currently. Prices for homes and businesses alike are fluctuating. Depending on where you live the prices can be better than in other areas. In the same respect you could also be situated in an area that is not fairing to well on the market. This is why it is essential to have a property valuation done so that you can assess whether or not it is a good time to put your property on the market. The other issue is that the valuation, although accurate, may not be what the buyer is willing to pay. At this point in time, the buyers are in more control and have the ability to take your price down, especially if you are desperate to sell your property. This being said it is still necessary to get an accurate valuation so that you can put your property on the market for the correct price.

There are three ways in which your property will be valued:

    • Asset approach: This approach will view the property as a set of assets and liabilities. This is especially important when valuing a business property as it can ascertain the cost of creating another business like yours, which is able to create the same economic benefits.

 

    • Market approach: this approach will look at the market value of the property. This is done by first ascertaining how much a property similar to yours is worth and also how much buyers are willing to pay for such a property.

 

  • Income approach: this approach is used only for business property valuations (unless you are running a business from your home). This is because it will look at how much income your business can bring in over a period of time. It also takes into consideration the risk factor were you to not generate the income that is needed for your business. This is done by using capitalization and discounting methods.

One you know the valuation of your property you will be able to go ahead and put it on the market. There are also other reasons apart from selling your property that should be considered. Due to tax purposes it is necessary to have all of the accurate information about your property, especially when running a business. Even if you are not intending to sell, you will need a valuation for when the tax season comes around.

Property valuers you can rely on

When it comes to the valuation of your property you want to make sure that you have the professionals by your side. Here at The Property Partnershipwe can provide you with that service. Visit our website Property Partnerships to find out when we are available for a consultation.