Property Assessment plays a vital role in a variety of endeavors, including real estate financing, listing land for sale, investment analysis, and real estate appraisal. For most people, the price of asking for or purchase price of a property is the most useful application of real property valuation.
Property valuation is done on various parameters some of them are:
The primary consideration in property assessment is to determine a property’s value: the present worth of future benefits arising from the ownership of real property. Unlike most of the consumer goods that are quickly used, the benefits of real land are realized over an elongated period of time. Therefore, an estimate of the value of a property must take into account of economic and social trends as well as government policies, controls or regulations and environmental conditions that may influence the four elements of value.
Demand – the desire/need for ownership supported by the financial means to satisfy your desire;
Utility – the ability to meet future owners’ desires and needs;
Scarcity – the limited supply of competing properties
Transferability – the ease with which ownership rights are transmitted.
Value vs. Cost and Price
Value is not necessarily equal to cost or price. Cost refers to actual expenditures; e.g., materials and labor. Price, on the other hand, is the amount that someone pays. While cost and price can affect value, they do not determine value. The sales price of a house might be ₹2 crore, but the value could be somewhat higher or lower. For instance, if a new owner finds a serious flaw in the house, such as a faulty foundation, the value of the house could be lower than the price.
An assessment is an opinion or estimate regarding the value of a particular estate as of a specific date. Appraisal/Assessment reports are used by businesses, governments, individuals, investors and mortgage lenders while making important decisions concerning real estate transactions. The goal of evaluation is to determine a property’s market rate: the most presumed price that the land will bring in a competing and open market. Market price, the amount at which a property sells, may not always represent the market price. For example, if a seller is in force because of the threat of foreclosure, or if the estate was sold in a private sale without being exposed to the open market, the land may sell below its market price.
There are more tools for the valuation of property that we provide. We have a professional team which performs all the activities involved in the valuation. It would be impossible for any individual to complete this independently. We offer an accurate Property Assessment which is a must to earn good profits from the sale or purchase of property and important to mortgage lenders, investors, insurers and buyers and sellers of real property – almost everyone who has an interest in the matter. While appraisals are also performed by skilled professionals, anyone involved in a real activity can benefit from gaining a basic understanding of the different methods of property valuation.