In the real estate industry, it is always important to get the accurate value of a property. This is to ensure that the buyer gets everything they would need for a home and the seller can earn great profit from selling it. In this case, property valuation helps determine the precise worth of properties, considering numerous factors like location, current market, and more.
If you plan to invest or sell a property in Cambodia, make sure you know everything about valuation and all the factors that’s necessary to get the true value of a home. Learn all you need about it and how to know if you’re selling your property at the right amount, continue reading below.
What is property valuation?
Property valuation is the process that assesses the current market value of a property, considering factors like scarcity, floor size, amenities, and market prices for similar real estate in the area. This is important to allow sellers, investors, and buyers to comprehend the true worth of a real estate to see if they’re getting a good deal. Not only that but property valuation can be used for taxes, insurance, financing, and more.
Additionally, property valuation is used for all types of real estate like the following:
- Commercial real estate
- Industrial real estate
- Residential real estate
Benefits of property valuation
Valuation reports are beneficial to give you a complete idea on how to sell, rent out your property or more. Here are some of the benefits to property valuation:
- Applying for mortgage → When you apply for a mortgage loan, having the accurate price of the property you want to buy helps. This is because the amount you can borrow is dependent on property price.
- For property transfer → The right property value helps determine the stamp tax when you want to transfer a property to someone else.
- For filing of taxes → There are numerous taxes you need to file when you have real estate like property tax, capital gains tax, municipal tax and more. Valuation reports are considered in the amount to be deducted in your tax file.
- Lease your property → Getting the right value of a property helps you make the right decision on rental prices. After all, you need to make sure you’re gaining profits rather than having a liability.
- For property buying/selling → Valuation reports help determine the fair market value of the property.
- Compulsory Acquisition → In cases wherein properties need to be acquired due to bankruptcy, a valuation report will help ascertain the price for the property in the auction.
Valuation fees in Cambodia
When you want a property to have its value assessed, there are specific valuation fees you can expect to pay in Cambodia. Valuation fees depend on the worth of the property as seen below:
- Below $100,000 → Fee is 0.17% of property value at a minimum of $170
- $100,000 – $1,000,000 → Fee is 0.1% of property value at a minimum of $900
- $1,000,000 – $5,000,000 → Fee is 0.05% of property value at a minimum of $2,000
- $5,000,000 – $10,000,000 → Fee is 0.03% of property value at a minimum of $1,500
- More than $10,000,000 → Fee is a minimum at 0.025% of property value.
Find the right Property Valuer for you
In the industry, there are a variety of ways to calculate real estate value considering all the necessary factors. However, there is no need to make it difficult for you since you can trust IPS Cambodia to be the organization that will give you a comprehensive and accurate valuation report.
Since there are numerous ways to assess the right value of a property, the most likely scenario is that you can get different property estimates depending on the method used. With IPS Cambodia, various methodologies are used to measure real estate value before the method that fits the property is chosen. An average estimate of different methodologies is also possible, especially considering all factors surrounding the real estate up for assessment.
Not only that but you can expect the following here at IPS Cambodia:
- Three different reports after assessment → Valuation certificate, comprehensive property report, and executive report
- Service Level Agreement with bank partners
- Detailed and factual commentary on the market surrounding the property
- Recent sale or actual transaction on the given real estate is used before valuation begins
- An International Valuation Standard (IVS) is strictly adhered to
- A comprehensive internal database on properties
- A dedicated valuation committee comprising a Country Manager, Valuation Manager, Senior Valuer, and Head of Valuations in the company. Everyone within the committee should approve the market value before a report is finalized and given to the client.
Make sure your property has the correct price by getting it evaluated. The sooner your property is assessed, the better for you so choose IPS Cambodia now to get the valuation report you need!