The common questions in real estate valuation 
Jan 13, 2025

The common questions in real estate valuation 

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Real estate valuation is a very important element in many real estate transactions, it is the focus of wide interest from those interested in the real estate market, if you need to sell or buy a property, you need to evaluate your property for legal or tax reasons, it is natural that there are many questions about this process. 

Below we will answer some common questions about real estate valuation. 

How is the cost of a real estate valuation determined?

In general, it is not possible to determine a specific price for a real estate valuation, as it is an agreement between the valuer and the property owner according to supply and demand, where the valuer determines the appropriate price for himself according to many factors, the most important of which are the factors that affect the price. 

  • Property type: 

The type of property plays an important role in determining the price, whether it is residential, commercial, or a piece of land, as each type has its details and complexities that inevitably lead to a different valuation

  • size and area: 

As the area of the property strongly determines the effort that the property assessor will exert if it is a large area, the price will be higher 

  • Location:

 Properties located in high-end neighborhoods, of course, have a higher valuation 

  • property Characteristics

 If there are special facilities such as swimming pools or gardens, or if the property is fully equipped, this needs a more detailed assessment

  • The experience of the valuer:

 Experience plays an important role in the fact that experienced and reputable valuers are involved

  • The valuation company:

 valuation prices vary from one company to another.

Therefore, it is not possible to determine a specific price for a real estate valuation until all the information and factors that help in this evaluation are available. 

How do you choose a real estate valuer? 

To ensure the best valuation result, several key factors must be present in the valuer, the most important of which are: 

  • License:

 It should be verified that the licensee holds a license from the Saudi Authority for Accredited Valuers

  • Experience: 

Choose a real estate valuer with great experience in the field of real estate valuation. 

  • Recommendations:

 Checking the recommendations and opinions of previous clients will help you make a better decision.

  • Price comparison:

 Comparing the services of different valuers helps in taking the best quality with the most favorable price. 

What is the purpose of a real estate valuation? 

If you are a buyer or seller of a property, you will surely have a question about the price of this property in the current market, and real estate valuation answers this question by determining the price of the property at a specific time based on a set of different criteria and methods. 

What are the methods of real estate valuation? 

There are several common methods of  real estate valuation, including the following: 

  • Using a real estate valuer:

 The real estate valuer must be accredited by the Saudi Authority for Saudi Valuers have great experience in the real estate market and rely on the accepted standards of valuation 

– Using real estate valuation companies:

 These can evaluate the property and preserve its value and have a large share of knowledge in the real estate market and a large base of data that helps it to evaluate with the use of basic standards several real estate valuation companies in Riyadh provide this service such as Aain, which is one of the accredited real estate valuation companies that provide real estate valuation service. 

What are the stages of a real estate valuation? 

There are several stages that a real estate valuer goes through to get the valuation process right: 

  • Analyze and gather information:

 In the beginning, the valuer finds out why the property is being valued, whether for sale or other purposes, and then gathers the right information about the property such as location, area, facilities, local market study, and appropriate prices.

  • Initial inspection: 

The valuer visits the site accurately assesses its condition and looks at documents related to the property such as ownership and license

  • Valuation:

 It is done based on the main methods, including: 

  • Comparison method: 

The property is compared to other properties in the same condition that have been sold in the same area

  • Cost method: 

Calculate the cost of rebuilding the property today, taking into account the condition of the property and depreciation 

  • Income method: 

Estimating the value of the property based on the income produced by the property 

Analyze the results and prepare the final report: The valuer analyses the results obtained and determines the 

the market value of the real estate and then prepares the final report showing all stages of the valuation. 

What is the importance of the final valuation report?

It is an official document issued by a specialist in real estate valuation to determine the price of the property in the market at a specific time. It is considered a reference in real estate transactions, whether to sell, buy, or tax purposes. This report must contain several data such as property data and its valuation with mentioning the methods used in this evaluation and the influential factors that helped in building this evaluation.

In conclusion, this article answers some common questions that are useful in understanding the real estate valuation process more broadly, as it is a complex process that requires expertise and extensive knowledge of the local real estate markets and the factors affecting them, as this helps to make better decisions. 


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