No matter whether you’re searching to buy a new unit, striving to sell your existing home or just doing anything property-related, the issue of property valuation will recur and must be taken seriously. After all, it is critical to obtain an indicative value of how much your property is worth to ensure what the market is offering and that you are getting the most from your investment.
Buyers and sellers would be able to better position themselves during dialogues, by doing a proper property valuation
By doing a proper property valuation, buyers and sellers would have the ability to better position themselves during negotiations
Back to basics: What exactly is a property valuation?
A valuation is essentially an approximation of how much a property is worth. As it plays a crucial part in the negotiating process it is an integral part of the property transaction.
There are 2 kinds of property valuations – valuations that are real and indicative valuations. Indicative valuations are straightforward approximations of the value of a property, normally derived by taking into account the typical cost of properties bought and sold around exactly the same area of said property. These valuations are usually conducted by property owners themselves through their own observation and research.
Commonly, the valuer will base their assessment on :
– The general location
– Zoning determined by the Urban Redevelopment Authority (URA)
– The land size of the property
– The built up area of the property
– The amount of rooms the property has
– Vehicle accessibility to the property
– The age and state of the property
You are going to be provided with a valuation report detailing state, acreage size, the structure and consequent value of the property. Ideally, require the bulk range and the best way to ensure you get a precise cost sign of your property is always to seek three different valuation estimates.
For HDB flats, a valuation report can be obtained directly from the HDB. The valuation will be carried out by one of HDB’s panel of valuers, who are professionally competent and licensed by the Inland Revenue Authority of Singapore (IRAS).
For private properties, you can locate valuers at the Singapore Institute of Surveyors and Valuers (SISV). Yet, similar valuation services are additionally offered by some of the more established realtors like Jones Lang Lasalle, Colliers, Savills and DTZ.
Advantages of doing a property valuation
A valuation report, joined with an excellent knowledge of costs of similar properties, will help homeowners better cost their property for sale. Aside from the apparent advantage of obtaining a business comprehension of how much their property is actually worth, getting a proper valuation will additionally help home owners by:
– Letting peace of mind for potential buyers thinking to purchase the property by letting them understand that a good cost” that was “ is paid for said property
– Averting pricing disputes with the prospective buyer
Factors which will influence valuation
- Property valuation is a mixture of science, art and a little intuitive thinking. However, while getting the worth of a property is a common practice, there’s a danger of experiencing spur-of-the-moment emotions – the tendency of property owners to inflate prices based on firmly held sentiments attached to their assets.
- For example, some sellers place a higher premium on their own house may look at how much their property is being sold by their neighbours for and intentionally. Putting ego and pride away is consistently the best option when dealing with property discussions – consistently note that whilst the price is set by the seller, it truly is the buyer who determines the worth. Therefore if you were to price your house above and beyond what the typical buyer is willing to fork out, then there will be great chance of giving the impression your property is overpriced.
- Furthermore, the most dangerous thing a prospective home buyer or seller can do would be to base property costs on hearsay, notably without first doing one’s homework. The property marketplace today is quite clear, as such, property seekers must do their due diligence before deciding to enter into dialogues in assessing the fair market value from comparisons of similar properties.
- Common sense would say that while trying to find property applying rationale and objective thinking, is the order of the day. Buying and selling on impulse occurs more frequently than most would think. If all else fails, a rule of thumb would be to only purchase or sell property that strays no more than 3 percent from the average value for that particular property in the marketplace.