SIX IMPORTANT PURPOSES OF VALUATION
Valuation is the technique of estimating and determining the fair price or value of a property such as a building, a factory or other engineering structures of various types, land etc. A property valuation is an assessment of your property’s value, based on the location, condition and multiple other factors. Your valuation will be carried out in person by a professional surveyor who will take notes and photographs, and then send you a valuation report.You could use this when you price your property to put it on the market, if you are separating from a partner who owns part of your property, or when dealing with probate. A surveyor will carry out your valuation, as they’ll consider elements like the storage, age, size, wear and tear, and room layout in approximating an appropriate figure. They’ll also look at similar properties in the area and consider what the market is like.
Six important Purposes of Valuation
The main purpose of valuation are as follows:
Buying or Selling Property
When it is required to buy or sell a property, its valuation is required.
Taxation
To assess the tax of a property, its valuation is required. Taxes may be municipal tax, wealth tax, Property tax etc, and all the taxes are fixed on the valuation of the property.
Rent Function
In order to determine the rent of a property, valuation is required. Rent is usually fixed on the certain percentage of the amount of valuation which is 6% to 10% of valuation.
Security of loans or Mortgage
When loans are taken against the security of the property, its valuation is required.
Compulsory acquisition
Whenever a property is acquired by law; compensation is paid to the owner. To determine the amount of compensation, valuation of the property is required.
