Knowing the true value of your property is a very important decision whether you intend to sell it, mortgage it, or want to invest. The right price attracts buyers and ensures you get the highest return on your property investment. Determining this value is not a simple matter, and requires an understanding of the basics of real estate valuation and its tools, as well as consulting real estate valuation experts accredited by the Saudi Authority of Accredited Valuers

How do you determine the value of a real estate property?

Two main types of valuation can be used:

1. Market Valuation:

It aims to determine the fair value of the property based on the current market prices of similar properties in the same area. This is the most common type.

2. Cost Valuation:

Focuses on estimating the cost of building or replacing the entire property. This type is usually used for insurance or accounting purposes.

Real Estate Valuation Steps:

To know the value of your property you will need to find a professional valuer to issue an impartial report on the market value of your property and they will do the following: Before starting the valuation process, the valuer needs to gather information about your property and the surrounding area.

This information includes the total area of the property in square meters, the number of rooms and bathrooms, the available facilities such as swimming pools, garages, and balconies, the view of the property, the history of the property, the condition of the property and its assessment if it is good or the property needs maintenance, the classification and type of the property, and the purpose of the valuation if it is for sale, purchase or investment in the property.

It is also important to study the market and investigate the following information

• Recent sales prices of similar properties in the same geographical area during the last period, market trends, and the level of market movement.
• Factors affecting demand and supply in the same geographical area for the service provision, new developments.

Use of evaluation methods:

Cost method

This method is based on estimating the cost of building or replacing the entire property. The most important factors that are analyzed in this method are

• Cost of building materials
• The cost of workers
• The cost of design and engineering
• Cost of licenses and fees
• Life expectancy of the property

Income method:

This method is based on estimating the net income that a property can generate over a specified time. This method is used in the valuation of investment properties such as office buildings. The most important factors that are analyzed in this approach are

• Rental value
• Duration of the rent
• Vacancy rate
• Operating and maintenance expenses

Comparable Sales Analysis:

The valuer will search for properties similar to yours in terms of type, size, and location that have been recently sold or rented. Their prices are compared to yours, taking into account any differences in features and disadvantages.

Why do you need a property valuer as an owner?

• A certified real estate appraiser has the experience and knowledge to accurately value a property.
• A valuer has an in-depth understanding of the real estate industry and a mindset that can appreciate the factors that affect the value of a property.
• A valuer provides an objective analysis of the condition of the property and an unbiased report of the fair value.
• He Provides valuable advice to the property owner on how to optimize the value of the property and the best options for investing in the property.

Tips for choosing a real estate valuer:

• Look for a real estate valuer accredited by the Saudi Authority for Accredited Valuers or use a professional valuation company such as Aain Real Estate Valuation.
• Make sure the valuer has experience in valuing the type of property you own.
• Ask the valuer to provide examples of previous valuation reports.

Additional tips to sell your property for a good price:

• Improve the appearance: Before putting your property up for sale or rent, upgrade the facades and interiors. Repair any defects or damage, paint the walls, plant some flowers in the garden, and arrange the furniture neatly.
• Effective marketing: Use multiple channels to showcase your property, such as adverts on dedicated websites and social media. Create an attractive advert for your property with high-quality photos and an accurate description.
• Set an attractive price: Set a competitive price that corresponds to the real value of your property, taking into account market prices and demand and supply trends.

Are you looking for real estate valuation companies?

Hiring a real estate valuation company is very important and you should research and consult before hiring to get the best valuation service for your property, Aain Real Estate Valuation is one of the best real estate valuation companies in Saudi Arabia.

In conclusion, real estate valuation is an important process that requires gathering information, using valuation tools, and taking into account the factors that affect the value of the real estate, which will benefit the owner who wants to invest in real estate. By following the steps mentioned in this article, you can evaluate your property with a professional appraiser and set a suitable price that attracts buyers.