Do you know –
How much rent you should charge for your property?
How much you should pay for your property taxes?
What’s the accurate market value of your property?
If your answer is – ‘No’. Then you are missing something important.
Want to know why? Read ahead….
For real estate investment purpose, it is imperative to know the property’s value. As property valuation is a major factor to be aware of while investing in real estate. Property valuation plays a vital factor in making the correct decision. It helps you to know the how much rent is for the property, how much you should pay for property taxes which helps you to make wise deal in real estate that can increase your profit margins.
Real estate valuation is evaluated by the property valuer who is capable enough to inspect the whole property minutely in order to determine the fair market value of the property.
Now that we have discussed the importance of the property value, it’s time to discuss something about property valuation methods that property valuer Adelaide use –
Use online property value estimator –
There are number of online property value estimators present in the online world. Most of them are free of cost. Online property value estimator tool is an easy way to get a quick property estimate that can guide you to decide or to know how and which deal is best for you. So you can earn a good profit out of it.
All you have to do is put the information asked, while evaluating the property’s worth online and let the online property valuer tool to work for you. It is the fastest way to get the tentative idea of your property.
Though you cannot ignore the value of having a real estate property valuer like Property valuation Adelaide. No online tool has capability to replace the property valuer.
2. Sales compare approach –
The common and popular method to evaluate the property’s worth. It is also known as sales compare approach. In this real estate valuation method, it is done by comparing the property with the similar property. The properties that are like the subject property are used comparables. Make sure comparables should be similar to the property and use 3 to 4 comparables while evaluating the property’s worth via this approach.
3. Cost approach –
This method is based on the cost of property. It is advisable that real estate property maker should not buy the property at the amount with which one can make the replicate of the property. This real estate valuation method is used to evaluate the value of educational buildings, religious buildings, government buildings, hospitals etc.
First evaluate the land value then estimate the building cost of real estate property. After this deduct the depreciation cost of the property.
4. Income capitalization approach –
The another method to evaluate the property value is via Income capitalization approach. The method used for all income properties like apartment buildings. Commercial real estate etc. Direct capitalisation approach concentrates on property’s income.
Knowing about the property valuation methods keep you aware about the property value. It’s good to have basic idea of property valuation methods.