Despite the clarity and importance of the valuation service, it is still a mystery to some. There are many common questions about real estate valuations, and today we answer the most important one
Who does the real estate valuation?
A real estate valuation company or a real estate valuer accredited by the Saudi Authority of Accredited Valuers estimates the market value of a real estate property in normal circumstances.
He should familiarize himself with the most important valuation rules stipulated by the Saudi Authority of Accredited Valuers and International Accounting Standards. You can use real estate valuation companies such as Aain Real Estate Valuation Company, which provides real estate valuation services of all types, whether residential, commercial, administrative, or commercial.
How is a real estate valuation done?
Why can’t I do the real estate valuation myself? This question is sometimes asked in the perception that the task of real estate valuation is simple and can be done easily, but herein lies the complexity as determining the value of the real estate affects the trend and sales movement in the entire real estate sector and not just determining the value of buying and selling the real estate individually. Indiscriminate valuation and selling at prices that are not supported by a valuer from a certified and licensed valuer affects the quality of the real estate sector as a whole. Here are the most important factors that a valuer takes into consideration during the valuation process:
- Location
- View
- The condition of the real estate
- Quality of construction
- Proximity to services
- real estate size
- Specifications of the real estate
- Level of interior and exterior finishing
When do I have to find a real estate valuation?
Many people look for a real estate appraiser or property valuation company when they need to do one of the following:
- Selling and buying a real estate
- Applying for a mortgage
- Need to mortgage the real estate
- Ensuring the real estate
- Calculating real estate property taxes
An accredited valuer can provide an objective and impartial valuation of the real estate for the above purposes. They do this through a detailed report that includes an introduction to themselves, details of the property being valued, the valuation method used, and the assumptions and criteria considered to estimate the final value.
What is the cost of a real estate valuation service?
There is no set cost! The valuer will determine the cost of the project themselves based on the type of property and the complexity of the valuation. You can find out more about this by reading our article How much does a property valuation cost?
How many days does it take to value a real estate property?
The timing also depends on the valuer’s estimate of the time needed, as it depends on the type of real estate, as residential can be valued in less time than their administrative and commercial counterparts. Determining the purpose of the valuation and the ease of access to information are also factors that go into determining the time frame, but in general, we can say that the valuation of a residential real estate may need a maximum of a week.
What is the difference between fair value and market value?
Market value and fair value are two similar values with different names.
Market value and fair value is the estimated amount at which buyer and seller mutually agree to exchange assets and liabilities on the valuation date. You can determine it using one of the following methods:
- Market method:
By comparing the valued asset with identical or similar assets with known prices.
- Cost method:
This economic method is based on the idea that the buyer should not pay more than the cost necessary to obtain something similar in terms of benefit, whether by buying or building.
- Income Method:
By converting expected future income into capital and present value.
In summary, this article shows the importance of understanding the real estate valuation process and the challenges it may face, making it effective to use a certified property valuer to ensure an accurate and fair valuation. By going through this information, you will get a comprehensive view of real estate valuation, its standards, important terms, and different valuation methods.