How often do you find yourself at a loss when deciding to sell or buy a property? Sometimes the price may seem attractive to buy, but it may not reflect the property’s real value, so rushing into these decisions may cause heavy financial losses.

Here the role of real estate valuation emerges as a basic tool to evaluate the property based on specific reliable factors and criteria and guarantee your right at a fair and appropriate price, whether you are a seller, buyer or even an investor. 

In this article, we will explain the role of real estate valuation in determining the right price when selling or buying a property to make informed decisions.

How do I know if a real estate price is right?

When selling or buying a property, emotion, need, or even market conditions may take over, which makes many individuals rush to make decisions or even some investors in real estate investment, so we will discuss together some signs to know whether the price is suitable or not: 

• The price is not suitable for the location: 

It is one of the most important factors on which the price depends in terms of supply and demand in the area and the availability of services in the location, so it is important to understand the nature of the area well before buying or investing in real estate 

• Price of surrounding  properties:

One of the important factors in determining the price of the property is the market situation and the price of the property to neighboring properties, so the investor must know the prices of neighboring properties that have the same characteristics so that the price is not overpriced 

• Duration of time: 

If the property has been on sale for a long time, it is often due to a defect in the property or a mistake in its valuation, so you should hire a real estate appraiser to help you study all the factors. 

• Lack of demand: 

Sometimes the lack of demand for a particular property can be one of the signs that could be negative, so a property valuation in this case will help you make an informed decision 

This is one of the most prominent signs that may indicate that there is an issue with the price or the condition of the property, and here the real estate valuation comes as a compass that provides you with a clear guide before making any decision based on a report from an accredited real estate valuer. 

What is the difference between real estate valuation and price?

When talking about buying and selling a property, the term property valuation may be confused with determining the price, and despite their differences, they may meet one goal, which is to determine the value of the property: 

• Price: 

The price is the value set by the seller when offering the property for sale and this price may be based on personal consideration, as needed, or based on market expectations, the price may be low or high compared to the actual value of the property 

• Real estate valuation:

 It is the valuation of a specific real estate at a specific time by an accredited real estate valuer and based on specific international standards with many other property-specific factors such as the location and condition of the property 

The price set by the seller does not reflect the actual value of the property, but the property valuation is the most accurate tool to ensure a fair price for both parties and help investors make better decisions in property investment.

The importance of property valuation in determining the price

A property valuation contributes to guaranteeing your rights and determining a fair price based on reliable factors and standards: 

• Determining the fair price: 

Determining the price is one of the most important reasons for real estate valuation as it helps the seller, buyer, and even the investor to determine the market value and reach a fair price based on reliable criteria 

• Avoid financial losses: 

This is in terms of selling or buying the property at a higher or lower price than the market value, in addition to the financial losses that the investor may face 

• Making investment decisions: 

Real estate valuation contributes to knowing the market value of real estate, which helps investors make informed decisions when buying or selling 

Real estate valuation is a guarantee of your rights whether you are a buyer, seller or investor. If you need to request a real estate valuation, do not hesitate to contact Aain, one of the leading real estate valuation companies in Riyadh; its services extend to most parts of the Kingdom in addition to being accredited by the Saudi Authority of Accredited Valuers. 

In conclusion, real estate valuation is a guide for every investor and it is an essential and indispensable step when buying and selling a property to ensure the rights of all parties and determine the real value of the property, which helps in making informed decisions if you are looking for an accredited real estate valuer contact Aain, one of the most important real estate valuation companies in Riyadh to ensure your rights and make the best successful investment decisions.

Frequently Asked Questions

• What is real estate valuation?

It is the process of determining the market value of a specific real estate property at a specific time based on several factors and there are three main valuation methods: market method, income method, and cost method. 

• How do I know the valuation of my home?

This is done by using real estate valuation companies and through a real estate valuer accredited by the Saudi Authority of Accredited Valuers and provides all the information about the property and the real estate valuer makes a field visit and then issues a detailed real estate valuation report on the property, and we in Aain provide you with real estate valuation service through a trained and certified team where Aain has valued thousands of real estate and the number of hours of experience of our valuers has reached thousands of hours. 

• What are the factors that contribute to determining the value of real estate? 

Many factors help determine the value of the real estate, such as location, condition of the property, size of the property, surrounding facilities, and many other property characteristics.