Property valuation is the must before making any real estate property decision. It is a vital and key concept in the real estate world. There are various methods of making money via real estate transactions. Income generated by the real estate can make your rich. One should not ignore the importance of having real estate properties. Property valuers Perth serve as a savior when you are naive in the real estate business. Their experience will help you to make sagacious decisions in the real estate.
Wise and timely decisions in real estate business will lead you to earn a good amount. Right property valuation Perth is vital before making the property transactions. So here in this post, you will get to the various methods of property valuation. No matter you want to buy, sell or keep your property on rent. You should have an idea of various different methods of valuations –
Here we are listing the various methods of property valuation –
Sales comparison method – The best and easiest method ever. One can easily get the valuation of the residential properties via this method. Though it is not the right method to evaluate the commercial building valuation. First, you have to find similar property to the subject property which has been sold out in recent months or days. Get the rental value or sold price of that property and then makes a wise comparison among the two.
Cost calculation method – The next one is the cost approach. This is usually used for hospitals, schools, shopping malls, religious buildings, governmental buildings, etc. This is not an ideal method to calculate the value of the residential building. Here you have to calculate the price of land and construction cost. After calculating deduct the deterioration cost associated with the building.
Here we have mentioned some points for making calculation via this method easier. Read the points below –
First one is physical deterioration costs which are associated with repairs. The second one is – functional obsolescence in this property who design and structure are quite old and doesn’t come under the modern building. The third one is economic obsolescence like being next to a place where noise pollution is high. These are negative traits of any building or property. Deduct these cost from the original one to evaluate the right value.
Income capitalization approach – In the income capitalization approach valuer or appraiser evaluates the value of the property based on the income the real estate property generates. It’s calculated by taking the net operating income (NOI) of the rent collected and dividing it by the capitalization rate. It’s also known as the income approach to evaluating the real estate property value.
These are the three methods stated by the property valuer Perth. Hire the experts to get your valuation done. For best property valuation services contact property valuations Perth. Their years of experience will help you in making the right and real property related decisions. Happy valuations