Getting an accurate number of your property allows you to make better investment decisions, whether you plan to buy or sell buy real estate. In order to get the precise price, properties have to go through the process of property valuation where various factors are considered to determine its value.
Not only does property valuation help determine the accurate price of real estate, considering its current value and market, but it can also predict its future worth. This is important since market prices can generally just give you an idea of the average price that similar properties are sold. However, it doesn’t factor in the potential price of the property after considering other elements that surround it like location and scarcity.
Furthermore, property valuation can be used for various real estate options. Whether it’s land, commercial, industrial, or residential property, this process will help cement a better financial move for you.
There are four main things that valuators look into when assessing the true value of a property. The following can help influence the property into having a higher or lower price:
- Ease of transfer → How easy it would be to transfer ownership rights, property titles, and more to another individual or company
- Demand for the property → The desire to own the property within the market using monetary resources to get it
- Scarcity → The availability of similar properties within the market
- Utility of the property → The ability of the property to satisfy the needs and wants of the future buyers.
Taking into consideration these four elements, there are numerous valuation methods that can be used to determine property price. Since there are a variety of options, there might be a tendency for the real estate worth to be different if you use two different methods. However, you do not have to worry about that since there are companies that administer different methodologies to get a definite price.
At the top of these companies is IPS Cambodia that conducts accurate property valuation, comparing different methodologies and using an International Valuation Standard (IVS) to ensure you get factual information. Hire a valuator now rather than going through the process yourself since real estate companies have a keen understanding of the industry and can provide you with meticulous valuation reports.