8 typical pitfalls property valuation | Credence & Co.
Updated: May 9
Most of us would wnat to know how much is our assets worth. The process of property valuation is whereby a professional valuation service estimates the worth of a particular piece a professional valuation service estimates the worth of a particular piece of real estate when wanting to know how much is your property worth if you are planning to sell it, getting a loan or mortgage, or needing to recompense an estate.
Property Valuation Services: Avoid
Unfortunately, many catches can occur when looking for a valuation service, so we have compiled following list of the most common ones for you.
1) Knowing the type of valuation.
This is important because there are different valuations based on the reason for the inquiry.
For example, if someone needs an insurance quote, they would be better off speaking with an insurance company rather than a land or building valuer.
2) Knowing what you can afford.
This is an essential part of the process because you could ask for a valuation, which might be lower than your budget.
A valuer will not know your financial situation, so ensure this aspect is clear before commissioning them to complete work on your property.
3) Knowing the valuation's purpose.
If you want an estimate, then a desktop appraisal will suffice; however, if you need to make an accurate decision on whether or not to buy a property based on its value.
For example, as part of your business strategy – this aspect must be communicated from the outset.
4) Knowing the difference between land and building valuation.
The two are very different, with each having its purpose.
A) Land Valuation – also known as an unimproved value – will give you an estimate of what your property could sell for in its current state without any buildings or other improvements. For example, if someone were to buy the land only, they would have to build from scratch rather than buy a ready-made home that's already been constructed.
B) Building valuations come into play when estimating how much a finished structure may be worth if sold today based on its condition. This is because it accounts for structural damage and depreciation due to age and normal wear & tear.
Knowing the difference between the two is critical to ask for the correct type of valuation and not be disappointed with the results.
5) Knowing what they want.
This includes specifying a timeframe, budget, and location – among other things. If you're not sure, speak to a valuer, and they can help guide you in the right direction.
It's important to have realistic expectations regarding property values, so make sure that what you want is clear before getting started.
For example, specifying this will save time and money if you only want an estimate for a specific area. On the other hand, if you need a more detailed report, be prepared to pay for it.
The timeframe is also necessary – most valuations are completed within two weeks, but this can vary depending on the type of valuation required and how busy the valuer is.
6) Your mortgage balance
The lender may not provide it; in some cases, you might not even know your current balance – but ignoring it will result in an inaccurate valuation.
If you want to know how much your property is worth, including the mortgage balance is essential – otherwise, it's like driving a car without knowing how much petrol is left in its tank!
7) Asking for the impossible
Valuers are professionals who have been trained in their craft; they're not miracle workers! So if you're asking them to value a property that doesn't exist or is out of their area of expertise, don't be surprised if you don't receive a response or if it's way off from the actual value.
8) Assuming all valuations are created equal
Just as with any other service, you get what you pay for. A cheap valuation might be just that – cheap! It may not be as thorough or accurate as a more expensive one, so read the small print before signing anything.
On the other hand, if money is no object, then splash out on a luxury resort that will include all the bells and whistles. Think about your needs and budget before getting started, which will help narrow down your options.
Remembering these pitfalls can save both time and money! Search online for Credence & Co. in Dubai valuers; we have the required experience to let you know how we can help.
We hope these tips will help you sell or buy your next home.
If you are looking for a partner you can trust for your valuation requirements, Credence & Co. is one of the leading valuation companies in Dubai that possess the right team abilities and knowledge to deliver.
Talk to us now:
Email us: firstname.lastname@example.org
Office: +971 (4) 8790 747
Cell number +971 (58) 985 5344