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When a person or an entity decides to buy a property (commercial or residential) there are some important and vital processes and steps that must be gone through. First and foremost, it is important to identify the right right property for purchase. To enable this to happen, buyers could take the help of various sources of information including TV and newspapers advertisements and of course the internet. Many prospective customers are comfortable taking the services of real estate agents when it comes to buying such properties. Once the property has been identified there are other service providers whose role becomes very important.
One such service provider whose role is very important and significant is that of the real estate appraiser or valuer. Unless he comes out with a valuation report, in most of the cases ownership transfer from one entity to another will not happen. This is because a valuation report is often referred to as the property bible and it contains a number of useful and highly relevant information.
Many persons are under the opinion that valuation reports contain only the fair market value of the property. This is only partially true because apart from this figure there are a number of other information that are also provided along with a valuation report. For example, a complete and comprehensive valuation report will contain a lot of subjective information. It will talk about the locality where the property is situated, how well connected it is with the main city or town centre. It will have a look at the infrastructure that is available in terms of transport, water, power, schools, colleges, hospitals, shopping malls, and entertainment facilities.
The valuation report is also important for any prospective buyer because it will also list out the market value of similar properties in the same area. All this and much more will without any doubt go a long way in helping the buyer take a decision that is based on facts and figures that are derived from various angles and various sources.
Though selling your home may not be something that you would welcome, at times it may become unavoidable. It could become necessary for the purpose of buying a bigger home or moving from one location to another. Whatever is the reason, identifying the right buyer is perhaps the biggest task. You could try and do it yourself or take the help or real estate agents. The internet could also play a big role in helping you to identify the right buyer. Identifying the buyer is just one part of the story. There are other important points that should also be considered and tying up many loose ends is also something that needs to be kept in mind.
Another important aspect that should be kept in mind is having a fix on the sale price that you consider as genuine and correct. Towards this objective you must certainly value your house. There is none better than professional valuers who could help you to have a clear idea about what they perceive as the fair market value of the property in question. Valuing the property correctly is very important because it will impact the price that you would be able to realize from the buyer. You must also remember that just as you will be appointing a valuer, it is also quite likely that the buyer will also employ his own valuer to get a clear idea about the fair value of the property in question.
As a seller the onus lies on you to understand some important points and factors that could contribute to the value of your home. This will help you to take necessary steps to maximize the value of the same. While there is no doubt that certain factors like size of the property, its location, age and other factors are not within your control, there are quite a few other things that are very much under your control. For example regular renovation and upkeep of the home will go a long way in increasing its appeal which will eventually translate into higher value. Many homes have gardens and backyards which are not maintained the way they should be. It would not be a bad idea to pay attention to this simple fact. Hence, if you sit down and make a list you can have quite a few ways and means by which you can increase the value of your home.
There are many ways and means by which a property valuation can help a buyer to take a call on whether to buy a property or not. However, before getting into more details it would be pertinent to understand what property valuation is all about and why it is considered so very important. Put in plain and simple words, property valuation is nothing but going through a series of steps and calculations and arriving at the fair market value of the property in question. The definition might look quite simple but when it comes to actual valuation on the ground it indeed is quite difficult. Hence, there is a need to hire professional valuers to get the job done.
Though the main objective of property valuers is to help with the fair market value there are quite a few other reasons why they could be useful. As a buyer, you would like to be sure that you are buying the right property at the right price. However, given the inexperience that you may suffer from it would be virtually impossible for you to have a firm knowledge on the subject. You will have to essentially depend on the market value which could be often misleading. Under such circumstances, the role of property valuers could become very crucial to say the least.
Let us try and find out a few reasons why it makes sense to take the help and assistance of property valuers. First and foremost, they help in finding out the fair market value of the property using various undisputable inputs and parameters. They take into account the location of the property. Those who are into property buying and selling would agree that location perhaps plays a biggest role in setting the price for a property. The next important input is the age of the property. While land per-se will keep on increasing in value as it ages, when it comes to the construction on the lands, age certainly has a role to play. There are other smaller factors like the size or the property, environmental safeguards, looks and appearances which will also have a role to play in the value of the same.
Further the valuers use the right methods and tools to arrive at the fair market value of the property always being impartial and transparent. Hence, there is little doubt that hiring a property valuer could be useful in more ways than one.
If you look around and study the performance of property valuers, you will find that seven out of ten are finding the going pretty tough. Though there is no doubt that property valuation was considered to be a wonderful business opportunity even a few years ago, things are not the same today. This is because of a number of reasons. First and foremost, the numbers of valuers have increased quite substantially believing that there is easy money to be made. Secondly, the customers also have become more knowledgeable and demanding. They are ready to spend time on the internet and other sources of information before actually going in for buying and product or service. Real estate valuation is also not an exception. In view of the changed business scenario there is a need for serious property valuers to look at other ways and means by which they can move their business from one level of success to another.
In fact the same internet that is being used by new generation customers can be used to the advantage of professional valuers. The best starting point is to have a website of ones own. This might look very irrelevant today but this is the starting point for moving the business to a higher level. Apart from ensuring the quality of the website there is also the need to direct more number of visitors to it. This can be done by time tested and cost effective search engine optimization programs. Further, it would also not be a bad idea to be a part of the various social media sites like Facebook, Twitter just to name a few. Additionally taking part in various web competitions and events is also a good way to network better with prospects and also with existing customers.
Apart from the above which are essentially internet-centric, there also is the need to understand the importance of being members with various chambers of commerce. They can really help even the most ordinary real estate valuation companies to move much faster than expected. This is because chambers of commerce are the place where valuers can find people who are like minded and could be considered as stake holders. Further by being a member of chamber of commerce, it would be possible for the property valuers to attend various exhibitions, events, seminars and workshops. These events will certainly help them to reach out to more number of prospective customers.
Buying a home however big or small is certainly a very momentous and happy occasion. For many it could be once-in-a-lifetime experience. It is therefore very important to be doubly sure about such purchases and ensure that there are no loose ends left untied. Starting from the identification of the right real estate properties to looking for the right financiers for funding of the loan, it certainly is a lengthy and time consuming process. This part, once an in-principle decision has been taken, there are other important areas that need to be addressed and taken care of .
Signing of the purchase agreement with the seller is the first step for moving towards transfer of ownership from seller to buyer. However, prior to this step there is a need to take into account other factors. The buyers would like to have more details about the property and would like to be sure that he is buying it at the right price. To ensure this, one has to take the help and assistance of real estate valuers and appraisers. Though their main role is to give the right information about the fair market value of the property that is being bought, there are other important functions too that they perform.
Apart from choosing the right real estate agent or promoter, it is also important for property to hire the services of a professional and experienced property valuer. They will help a lot in sharing very useful information about the quality of infrastructure where the property is located. They will also give some valuable inputs regarding the availability of various amenities and facilities such as hospitals, schools, college, entertainment facilities, and transport facilities. The list could on and on.
Apart from hiring the services of the right property valuer, it is also very critical to hire the services of an appropriate real estate lawyer or attorney. The main role of these professionals is to ensure that the property in question is correct from the legal standpoint. This is not an easy job and it calls for looking up the property documents in minute detail. Care has to be taken to avoid some unpleasant surprises along the way. Many sellers might conceal the fact that the property has some easements, covenants and other encumbrances that prevent it from having a clear title. This can be found out only when a physical examination and inspection of the property is done.
While there is a lot of scope and potential in the real estate valuation and appraisal business, when it comes to success ratio it continues to be quite low. The people who fail in these businesses are far more than those who succeed in it. Under such circumstances, it is important for those who have not made it big to take some lessons for those who have been able to built successful property valuation businesses. Here are a few tips and suggestions that could help fledgling real estate valuers to move from one level of success to another.
A good valuer is one who is able to understand the pulse of the customer quite easily. This will enable him to tutor his services and offer something that is liked by the customers and something that adds value to them. Further a good valuer is one who is in a position to offer all the valuation related services under one roof. This again is something that many valuers fail to keep in mind. Whether it is simple valuations or complex backdated or retrospective valuations, it is imperative that as valuers you should be in a position to offer it to the customers.
Outsourcing of valuation activities should be avoided to the maximum extent possible. This is very important because outsourcing leads to deterioration of quality. Hence, good valuers are those who have a team of qualified, experience and capable valuers in their payroll. This will not only ensure good quality but will also go a long way in delivering the various requirements well on time.
It is also expected that professional valuers should understand the importance of the internet and other modern day technology. While having a website is extremely important they should also find out ways and means by which it can be put to good use. Offering online valuation is something that could see a paradigm shift in valuation business. However, offering this facility is not very easy. A beginning has to be made by automating the entire back office operations. Further, it is also important for valuers to understand the need to be present quite actively in social media sites like Facebook, Twitter, YouTube and Linkedin. This will certainly increase visibility and lead to more enquiries coming in.
Before we understand the attributes of a quality property valuer, it would be important to find out what exactly his roles are. Whenever a property is bought or sold there is no doubt there are a number of processes which have to the gone through. One such process is property valuation. The main purpose of valuing a property is to find out the fair market value of it. While this is the primary objective of any valuation, there are some additional benefits which are also offered by valuers. This includes qualitative information about the location of the property, its condition, the availability of amenities and facilities and also useful information about the quality of people who make up the neighborhood. Since the information as mentioned above is very complicated and difficult to obtain, it is very normal for customers to take the help of valuers.
Now coming to the main topic, the first important when choosing the valuer is to look for only those valuers who are certified under the law. They should also have rich experience and expertise in this field. They should preferably have a formal qualification on valuation related matters. A good valuer is one who can offer solutions for even the most complicated valuation related matters. He should be considered as a one stop solution for all valuations. No customer should go back without getting is requirement fulfilled.
Amongst a few more important points, modern day property valuers should understand the importance of technology and the internet in particular. They should be willing to offer online valuation facility to all those customers who want it. Today’s customers are suffering from shortage of time and this point should always be kept in mind while choosing a valuer. Being competitive and being reasonable in pricing is one more point that cannot be ignored. However, in the quest of being price competitive one should not choose valuers who compromise on the quality of services being offered to the customers.
Last but not the least, timely submission of reports and returns is also a good attribute of a professional valuer. There could be many situations where the timelines fixed by the customer might be very demanding. A competent valuer should be in a position to handle such tight situations comfortably.
There are a number of legal, administrative and compliance related steps that have to be gone through whenever there is a need to either buy or sell a real estate property. While there is no doubt that seasoned property developers and businessmen would be aware of it, when it comes to individuals there is reason to believe that the knowledge levels are quite low. Hence, at times many customers get into the process of buying and selling not knowing what exactly to do next. Amongst the various processes that are extremely important, there is hardly any doubt that property valuation is considered to be very vital and crucial to say the least. The fair market value report that is provided by the valuer has a big bearing on the decision making especially for real estate buyers. Apart from the report on the value of the property there are also other subjective bits of information that are also very crucial for the customer.
Against this background, the need of the hour is to identify the right valuer. This is not easy because many individual customers do not know what to look for when hiring a property valuer. Here are a few important tips that could go a long way in helping such individual customers to have some basic idea when hiring valuers. First and foremost, as a customer one should look only for valuers who have a formal certificate to run their valuation business. Secondly, experience is extremely important in this business and you should only go in for valuers who have put in at least 10 to 15 years’ experience in this field. Thirdly, you must always go in for valuers who can offer wholesome services under one roof. Any good valuer should not let his customer walk out without offering their services. A good valuer is a one stop solution for all types of valuations, however simple or complex it might be. Good valuers are also supposed to have good relations with banks and financial institutions. Such relationships will certainly help the customers in more ways than one.
While there is no doubt that pricing is an important point to be considered while going in for valuation, as a customer you should know how to draw a line between the fees and the kind of services that are being offered.
Experience in the field of valuation is the first and foremost point that needs to be kept in mind when you are in process of recruiting valuers. This is because experience is a good teacher and it has generally been found that valuers who have experience in this business are in a position to help in any type of valuation. The next important point is to look for valuers who could be considered as a one stop solution for all valuation related matters. As a customer you should be aware that there are different types of valuations. Starting from simple or vanillas property valuations to complex backdated or retrospective valuations, the list could go on and on. Hence, as a valuer the onus is on the service provider to ensure that he is able to handle any simple or complex type of valuations.
Having a certified and being permitted under the law to work as a valuer is another important point that should always be kept in mind. Taking help from uncertified valuers is similar to getting oneself treated from a quack or uncertified doctor. The next important point that one need to bear in mind is to identify valuers who have a formal qualification. Though a formal qualification may not be mandatory, it has generally been found that valuers who are qualified are able to handle even the most complex valuations professionally and successfully. Timely submission of valuation reports is one more area where valuers could play a big role. Most of the valuation reports have a tight time schedule and professional valuers should always keep this point in mind. Last but not the least keeping the pricing reasonable and affordable is also important. However, low prices does not necessarily mean low quality of services and a valuer should know where to draw a line between cost of service and quality of service.
First and foremost, before going in for a real estate valuer you should as a customer understand the importance of hiring him. This is because many customers are of the opinion that transfer of ownership can be done without valuing the property. This is not possible and will create lot of hurdles and challenges along the way. Once this thought process is clearly understood one can start being on the lookout for the right service provider.
When choosing a real estate valuer, the first thing that should be considered is experience. A good valuer is one who has put in at least ten to twelve years of experience in this line. Apart from experience it is always important to look for valuers who have a certificate to carry on their profession. Working with an uncertified valuer is akin to getting yourselves treated from quack instead of a qualified doctor.
Good valuers are those who can offer a single window solution for all types of valuation related matters. Whether it is complicated superannuation valuation or backdated/retrospective valuation, they should be able to handle it with efficiency. Speedy disposal of cases and ensuring that valuation reports are submitted on time is another important attribute of a good quality. Further they should be able to offer valuable subjective advice on the property that is being planned for purchase or sale. Such information should contain the details regarding the development of amenities and facilities and the development of infrastructure in the locality. It is also important for valuers to understand the need to be present on the internet given the importance of technology.
While price certainly is a very important consideration, it would not be advisable to go in for valuers who are offering low rates but at the same time are compromising on the quality of services that they offer. Hence, there is no doubt that choosing the right valuer does take time and effort.
The first attribute for being successful in the real estate business is to understand the market well. This can come only with experience. Further one has to always keep in mind that achieving success in real estate business cannot happen overnight but it has to be a process that is well crafted and well thought out. Further, there are quite a few other important points that need to be kept in mind too. It is always better to work under a real estate entrepreneur for a few years, gather the required experience and then start off your own real estate business. Experience is very important for those aspiring to be successful in this area. Further, there is also need to change with changing times and changing customers’ needs and preferences.
Today’s customers certainly look for full value for money and if possible something more when they go in for real estate buying or selling. Hence, as real estate businessmen it is important to walk that extra mile and go beyond the normal call of duty. They should be adding something more than helping the customer to buy a new home or apartments. This is perhaps the reason why many real estate businessmen and promoter offer additional services that are complimentary to their main line of business.
Towards this objective it would be pertinent to mention here that many real estate promoters are seen offering valuation of real estate and properties as ancillary services for their customers. This goes a long way in adding value to the customers in the true sense of the term. Further it would also be not out of place to mention here that many real estate businessmen are also very aggressive in the use of the internet and other means of communications when it comes to reaching out more number of customers. Hence, thinking out of the box and adding value to customers is something that should always be kept in mind.