Those who are engaged in the business of buying and selling property have their work cut out for them. It is not an easy business, though the returns are sometimes worth it. You have to know how to carry out each aspect of the business. One of the things you have to learn pretty fast is valuing investment properties.
There is no way an estate can be sold if its real value is not known. There has to be a way of determining this before it is sold. Do not try to be clever enough to guess this value. The only person who should do this is a professional trained for it.
Even while waiting for something accurate from the professionals, you can try to make your own estimate. If there are some similar buildings in the neighborhood, you can easily estimate the value based on that of the similar buildings nearby. You should check the prices of the ones that had been recently sold. Your building will probably cost around the same.
The estimate you get should only be used as a guide. In the meantime, hire more than one agent to do the valuation. This is because you cannot know if an error has been made if you use only one person. Also, check the condition of the house, and know how it is likely to affect its price.
You know that property prices tend to fluctuate a lot. This means that you cannot work with an estimate that was carried out a long time ago. If you did not sell it then, have it valued again. In fact, every time the estate is to be sold it should be valued afresh.
Commercial properties are valued differently from residential ones. The price is mostly set per square foot or per unit. The price per unit calculation is based on prices of similar houses in the area. This will give you a very close estimate of the actual value.
Most commercial buildings are sold through the per square foot pricing. Buildings that can be used for warehouses, for instance, are not normally taken as a unit. This is because they are usually of very large sizes. You can easily find more than one person buying the same building.
There is no way valuing investment properties can be skipped. Even if the seller is willing to do that the buyer will not. It is a factor that interests both parties. If they like, they can get a joint agent or both of them can hire different ones.
There is no way an estate can be sold if its real value is not known. There has to be a way of determining this before it is sold. Do not try to be clever enough to guess this value. The only person who should do this is a professional trained for it.
Even while waiting for something accurate from the professionals, you can try to make your own estimate. If there are some similar buildings in the neighborhood, you can easily estimate the value based on that of the similar buildings nearby. You should check the prices of the ones that had been recently sold. Your building will probably cost around the same.
The estimate you get should only be used as a guide. In the meantime, hire more than one agent to do the valuation. This is because you cannot know if an error has been made if you use only one person. Also, check the condition of the house, and know how it is likely to affect its price.
You know that property prices tend to fluctuate a lot. This means that you cannot work with an estimate that was carried out a long time ago. If you did not sell it then, have it valued again. In fact, every time the estate is to be sold it should be valued afresh.
Commercial properties are valued differently from residential ones. The price is mostly set per square foot or per unit. The price per unit calculation is based on prices of similar houses in the area. This will give you a very close estimate of the actual value.
Most commercial buildings are sold through the per square foot pricing. Buildings that can be used for warehouses, for instance, are not normally taken as a unit. This is because they are usually of very large sizes. You can easily find more than one person buying the same building.
There is no way valuing investment properties can be skipped. Even if the seller is willing to do that the buyer will not. It is a factor that interests both parties. If they like, they can get a joint agent or both of them can hire different ones.
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