Monthly Archives: August 2018

Smart ways to increase the value of your commercial property

Investing in the commercial property gives you a good return on investment and the most lucrative opportunity for the real estate investors as they purchase the commercial properties and put them on rent. Whereas the question is how they can evaluate the rental value of the property? For this commercial property valuation is needed. And obviously, you want the best property valuation figures for your property which gives you a good rental value.

Know how you can increase the value to your commercial property and get good returns –

Make property aesthetically strong – Improve your property is a wise way to attract the tenants. The small amendments to renovate the property like – change in flooring, painting the interior and exterior, installing or improving the heating or cooling system, extending the shop sizes by using the wasted area you had and these types of renovation won’t cost you much and after this you can ask for the tenants for higher rent as you are providing the good working space.

Big renovation like the structural improvement or constructing the new building on the place of an old and deteriorated one brings huge involvement of the money and time. But if you are sure to get good returns on this investment they surely you should go for it.

Example – Constructing a new property (with offices and shops) in place of old warehouse which is located in the commercial area is the right decision which can helps you to generate more income in a better way, as the sales value has increased after renovation. In these matters, you can take the suggestion of the commercial property valuers as they possess good market knowledge.

If you give old, shabby, uncleaned, unattractive building then tenants pay less for those buildings and on the contrary, if you offer a fresh, attractive, organised and well-maintained building then tenants are ready to pay high rents also.

Keep the rental price as per the market – To be in the real estate world and make profits, you should know about the current market trends and condition. Keep the rental price of the property as per the market. The too high in rental value will keep potential tenant away from you. Also, this can make your property vacant and empty for a long time leads to a decrease in property value. Whereas the too low rental value won’t match the profits you had desired of. Ask the real estate property valuer and fix the rent that works well.

Add amenities – Look for the high tech and digital ways to add facilities to your property like installing a digital security system, installing air conditioners and heaters, offering wifi zones to attracts the more tenants. You can too add the facilities like – small waiting lounges, playground, courtyards, praying rooms, lunch area etc. so people can enjoy the workspace and likely to have more interest in your property.

These are the sure shot smart ways to increase the value of your commercial property. Contact us, if you want to know anything more about the commercial property valuation services. Our expert property valuers are always there to help you out.

Know what expert says to remember while making a deal in real estate.

Buying and selling the property is the cumbersome process when you are naive to the real estate business. No idea at what price you should sell the property or keep it on rent annoys you. Though the property valuation services can give you the idea at what price or offer one can sell the property but unfortunately people ask for property valuation services after the offer accepted by the buyer. This leads to making a wrong deal. Here are the few tips or experts advice on how and what you should do while buying or selling the real estate property.

Call a valuer before offering a lucrative offer – Property valuation should be the first process before selling or buying the property but unfortunately, it is not. Before making a real estate property decision, call an expert property valuer for the advice.
Being an owner you should know the right value of the property which helps you to sell the property at the right price. Deciding the selling price more than the appraisal value may lead to losing the prospective customers. Whereas low price than actual property value puts a dent in the owner’s profit margin.

Low price always doesn’t work – Buying a property needs a huge amount of the money. Obviously, low price property can entice the buyers. But an expert says it won’t work always. As the property comes with various influencing factors associated with it. Seeking only for the low price property leads to having a concrete structured building only. Not the property which brings good returns on investment.

Also sometimes the owner sells the property at a low price in order to pull the customers. Instead of making the price low owner should smartly display the features and facilities associated with the property which can be a nice way to grab the customers attention.

Know the qualities, the property should possess which grabs the customer’s attention –

Where it is located – Location matters. The value of the property is directly proportional to the location. Central or prime location from where the accessing and commuting facilities are easily available to the important and various parts of the city costs high. The area with high profile offices and companies is the desirable location for both the residential and commercial purposes But are very much expensive.

Some real estate builders prefer to build the property in the outside area or peripheral area the city, where the property prices are not too high cause they are far from the central location.

As per the convenience, priorities, and pocket strength, the customers should decide which one is best.

Amenities associated – The word ‘house’ indicates the where our heart stays, the place where we can rest, rejuvenate our mind, body, and soul. The perfect place to escape from the fast competitive world. Where we can be ourselves. Then what kind of facilities it should have. Obviously, the green park, playing and swimming area, tennis & basketball court, gym and yoga halls, club and party houses come into demand. It is not like longer luxuries we are demanding it is the facilities that make home a complete place to live in.

Here are the tips to remember before buying or selling the real estate property. What you are waiting for. Contact the best property valuation service provider company to get in touch with property valuers so you can make deals effortlessly and flawlessly.

Methods to evaluate the commercial property value

Commercial property is the property used for a commercial purpose like offices, restaurants, retail stores, clubs, shops, malls, warehouses, garages. These properties are design with the intention to generate profits. Whether you want to purchase, sell, put it on rental basis you must aware of your commercial property value.

The undeniable fact is — it is much easier to evaluate the residential property value in comparison with commercial real estate property value. Because finding a comparable for your commercial building is very tough task and tedious too. So it is better to hire a property valuer, who can evaluate your property value easily and accurately. A valuer is a person who takes all the influencing factors into consideration, inspect the property minutely and then evaluates the right value of the property.

While determining the actual market value of the commercial property, the uncontrollable factors like economy value, market conditions come into picture. Cause of these factors the commercial property value varies so much.

Basically three methods are used to find the commercial property value –

Cost approach – The cost approach is used to evaluate the property value, as finding the comparables of commercial building is very difficult. In this method, the valuer finds what will be the cost if replica will be made. Example – the commercial building of which you want to know the value, Valuer find what will be the cost of creating structure alike the subject property. The current price of land, building material and construction cost and other cost paid to build this commercial building. Calculating all the costs one can know the right value of the property. This is called as cost approach.

Sales comparison approach – As the method’s name is ‘Sale comparison’. So the sales comparison is made between the subject commercial property and comparables. Comparables are the property which are sold out in recent months and is nearby the subject property. It looks like a subject property and moreover the type of property is same.

Example – Property A is subject property of 3000 sqft land area and 2 floors building with
Having 2 big size halls, 10 medium size shops. Whereas the property B which is sold out in the last month with 2500 sqft land area and 3 floors building having 5 big sizehalls, 7 medium size shops, 3 small size shops. This is called comparables.

The Sales comparison method is mostly used for residential purpose. As finding a comparable is easy in residential buildings. It is essential to have a comparable if you want to estimate commercial property value via sales approach. Without comparable it won’t be possible to go and find property value via this approach.

Income capitalization approach – There are three elements used in this method. Income i.e Income generated from the property, ratio i.e capital ratio and value i.e value of the property. The value can be determined with the income from the building to the capital ratio.

Commercial property valuation is tough and required in the fixed interval of time. Better to hire a commercial property valuer to get the accurately estimated commercial property value.

Why do house valuations vary and which factors affects the property prices?

Property valuation is the definite economic value of the property that is determined by the qualified property valuer, it is the dynamic value that changes frequently. The real estate investors know the importance of having the correct valuation. As it saves you from making wrong financial decision. The property valuation act as a guide to make the correct decisions in the real estate world.

There is a difference in property value and property price. Property value is something that is estimated by the property valuer by gathering information related to the property, doing some calculations, previous sales history, and keeping all the influencing factors into consideration, the property valuer determines the value of the property.

Whereas the price of the property depends on – the cost at which buyer is willing to pay for and the seller is ready to sell the property is called as property price.

It is not necessary that property value will be equal to property price. Here are the factors that affects the real estate property prices –

Property’s Location – Where it is located? near Airport, Bus and train station, near school, near office. These are the questions (basically requirements of buyer) before buying the house or property. For example – The family is looking for a house which is near to their office location, because they are now sick of travelling and city’s traffic. So they want a house near to their office which makes commuting easy for them.

In this case, they will agree to pay some higher price for the house near to their office location because this is something, they are looking for. Thus seller can take advantage and may sell the property at high price.

In other case, the property’s location is not easily reachable. Then the prices will go down automatically.

Property condition – Property which is well furnished cost high than the one which demands renovation. People are less interested to buy a place which requires renovation. The house with well updated kitchen and bathrooms is more liked by the buyer because the large sum of money needed to renovate these two places. What’s the actual condition of your property impacts the price of the house directly.

Comparable prices – Yes, this you cannot have control over but you can’t ignore it too. The residential property valuers and real estate agents took this into consideration while evaluating the property’s value. The most common method used to evaluate the property’s value is Sales comparison method, In this expert property valuers look at the selling price of those properties which are similar to your subject property. The comparables that are sold out at less price due to any reason puts wrong impression, while calculating your house price.

Impact of Valuation figures – It is the formal way of valuing the property. If the property value is less and seller is demanding higher price than property value than buyer is least interested in buyer such property. The price of the property is affected by property value.

Overall Economy of the country, market conditions, and interest rates are the major factors behind the property price. The prices and value of the property are dynamic and cyclical in nature and majorly it is depends on uncontrollable factors.That’s the reason they varies so much.

The valuers assure, (If there will be no change in market conditions) then this valuation figure will be valid till three months, after the valuation. It is good to have your property valuation after every six months.

Planning to hire a property valuer? We will be happy to assist you. Feel free to contact us, if you need any property valuation services.

How can I find the fair market value of my home

Maybe you don’t want to sell your property right now, but this is an interesting question, and you should be aware of this answer. Finding the property value can help you in many ways.

Whether you are planning for property renovation or buying another property for investment.

You should be aware of what‘s the value of your property you possess.

What is property valuation? Why it is important?

It is a way to find the actual market value of your property. It is vital to make the several financial decisions related to the property.

You must be aware of this, the fair market value of the property is not always equal to the sales price of the property. It basically depends upon the buyer and seller’s mutual understanding. Sometimes the sales price is less or equal to the property value.

How to get your house valued?
Find the best property valuer in your town and get your house valued. It’s easy.

Qualities your valuer should possess –

  • Determines the accurate property value.
  • Provides property value reports.
  • Give tips on how to rise the property value.
  • Honest and keeps your property value report confidential.
  • Valuer should have great market knowledge.

What is the cost of property valuation?

The cost of the property valuation varies because it depends upon the property size, market condition, geographical location, type of the building and many more. Basically, the valuation reason for every property differs, it is not even possible for the valuation companies to fix their price. But it is wise to get in touch with 2-3 top property valuations companies and then compare their services and cost. Choose the one who provides you value for the money.

Benefits of knowing house worth –
Nowadays It is vital to know the property value when you are in the market. Otherwise, you may lose a big deal and left with nothing much into your profit accounts. So to make the noticeable profit from your most valuable asset i.e house, ask property valuers to determine the actual worth of your house.

House values depend upon various factors like –

  • Location of your house.
  • Current market condition.
  • Condition of the property
  • How old your house is, i.e age of the house.
  • Number of rooms, bathrooms available.
  • Renovations need or not.
  • Interior and exterior of the building.
  • Condition and availability of the garden, garage, front yard, backyard etc.
  • Neighborhood – surrounding also plays a significant role in property’s value.
  • Amenities like transportation, school, religious places, bus and train stations, airport and many more.

Considering these factors, the property valuer evaluates the actual market value of the house. There is a difference in property appraisal and property valuer that you should be aware of.

Property valuation is the professional way of estimating the property’s value by considering every factor minutely and than prepare the report which exhibits the details of the property. Overall it’s a professional way to know about your property value.

A property appraisal is done by a real estate agent on the request to do so. The factors like market knowledge, recent sales can keep real estate agents to quote a value, That is not definitive and not a legal way of property valuation.

So hire registered property valuer soon.

How can a property owner challenge a valuer’s valuation of your property?

Is it right to hire a property valuer first and then challenge the valuer for his work i.e property valuation?

The very first thing is, for hiring a valuer you are giving the fees or you are paying the cost to hire the property valuer and if with the property valuation you are not satisfied then you can put a list of questions or a challenge a valuer. Undoubtedly, just to clear the doubts you have.

No matter who will be proved as right or wrong. Always remember the profit will be yours only. Then why to give a second thought before putting question on property valuer’s task, When you know there is something wrong in valuation.

As the property value assessments are related to the financial decisions of the real estate world. The wrong valuation may lead to put hands in a wrong deal which ultimately leads to financial losses. So the right valuation of the property is must.

For this hire an expert valuer having experience and knowledge of the market is essential. Otherwise, non-professional valuer will definitely gives you the inaccurate valuation results. The important challenge for property valuers is to develop a great understanding of the market and good analytical skills, with an aim to determine the appropriate property value.

After hiring an expert, knowledgeable and experienced valuer for your property valuation your task will not going to end. Overall it’s your property and the profit or loss you will make will be yours only. So it’s advisable to check the property valuation process adapted by your property valuer. Eventually which helps you to have a right property valuation of your real estate property.

People want to ask –

Can we challenge the property valuation by property valuer?
Yes, you can challenge. If you think your property possess more value than it is estimated by the valuer or any other appropriate reason along with pieces of evidence in that case you can challenge the property valuation.

How can we challenge a valuer’s valuation?
You can do this only when you have market knowledge, knowledge of comparable properties value (which are nearby your property and sold out in last six months), when you know the analytical methods to measure the property value, then you can challenge the property valuation of the valuer.

Ask the valuers to give you the proper valuation reports, so you can make the valid challenge to the valuer to correct the valuation of your property.
Check the analytical calculations of the valuer, there is a big chance to get an error in this section.

Make sure assessor has visited the whole property and added all the valuable items rightly.

No room, no place (of the property) shouldn’t be left untouched by the property valuer while inspecting the property. Also check the list in the report that he has added the all rooms, bathrooms accurately or not.

Having the right valuation of your property after hiring the property valuer is your right. You can and must challenge the valuer if the valuation is not satisfying you. Hire the best property valuer to know the right value of your property.