The value and importance of valuation
When we talk of valuation, we are simply referring to the assessment of the market value of a property, or piece of land. Value is the measure of benefits provided by a service, or a good to the user of the product.
Valuation requires one to seek assistance from a valuer, or a surveyor. Valuation in itself is the opinion of a neutral and independent person (surveyor/valuer) who expresses this personal opinion as to the fair market value of the price, which your specific property would fetch if presented for sale to the public.
It is important to know the value of your property before diving into any form of transaction. The worth of your property should clearly be outlined in any effective valuation.
Valuation is essential in the real estate market and whether you are buying a piece of land, or property, selling, or involved in one of the many countless real estate transactions, you need to have an idea of the market value of your property.
Generally, a property is only worth what someone is willing to pay for it. A valuation is important in the use of gaining an approximate figure. A property valuation; however, whether carried out by a valuer, or a surveyor, is only an estimate and can never be considered one hundred percent accurate due to the guesswork involved when arriving at a figure.
In as much as a valuation is not a hundred percent accurate, it will give you, either as a buyer, or a seller, a good idea of what you should be paying for a piece of land, or property or receiving for it.
Reasons for carrying out a valuation
In as much as valuation is important, a lot of people do not understand how vital the process is and simply consider it as an added expense.
The property market in Kenya is experiencing a rejuvenated growth as has been the case for the past decade. This has seen a majority of people coming across scenarios whereby the prospective buyers, the property holders and the insurance companies are stuck in agreeing on the right price for a property, or for insurance settlements.
When to do a valuation
Obtaining a proper valuation is an essential process when it comes down to the selling and buying of land as well as getting your insurance claims.
Naturally, any seller of a property will want to receive a higher valuation whereas the buyer would want to get a low valuation and as both parties approach the negotiation phase, it is important to seek the opinion of a valuer. This unbiased opinion will go a long way in ensuring that no party is particularly favored and will help them in achieving a common goal.
The information contained in valuation
Valuation plays a great role in legal proceedings and in as much as everything goes you want to get the best, independent and most accurate valuations. The failure to achieve such can lead to a great deal of damage and you would want to ensure whoever you are hiring understands the processes and will make sure you receive the most accurate value for the property in question. You also want to ensure that this market value is supported by expert research. This expert research includes items such as prior sales and the history of the property as well as all other details that may pertain to the overall value of the property.
Considerations in Property valuation
As you consider investing in land or property, always remember key elements are the ones, which will act as points of reference and getting the best deal is key as real estate investments are one of the biggest investments any individual can make and they are lifelong not unless one decides to sell.
Geographical location is one of the important things that most people consider. Land parcels, or properties near great infrastructure or social amenities command higher prices during valuation compared to those located in the interior areas since they may be a bit harder to access.
The demand of property is a key factor in determining the value of your property. Land and property in cities such as Nairobi naturally fetch higher prices as compared to other areas.
You should also be aware of the fact that different types of property will yield varied amounts of valuation even if they are located in the same place. The nature of property, or land determines this as land can be commercial, residential, industrial, or even agricultural. .
A good property valuer and the ensuing property valuation will be worth far more than the valuation cost simply because the accurate, detailed, and in-depth information you will receive from the valuation will inform you in much more profitable decisions about your property.
Denver Group Limited is among the best real estate companies in Nairobi Kenya, we provide solutions to the investors through provision of value added plots with ready Title Deeds.