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val-u-a-tion
noun
The act or process of assessing value or
price; an appraisal; assessed value or price; an estimation or appreciation
of worth.
In a perfect world, you'll sell
your home for the most amount of money within the least amount of
time, and you'll buy your
new home with the least amount of money, and again, within the least
amount of time. These don't happen often. Pricing your abode too high
can cost you money in the long run - while overpaying for your new
domicile will of course, incur unnecessary costs for you.
This is where valuation comes in. It's the cornerstone of purchase
and sales negotiations - gauging the market value of your home-to-be
or existing home, using endorsed means.
Now, what's market value?
When a property sells, the purchase price establishes the market value.
Thus, in layman's terms, market value is simply the price that a buyer
is willing to pay for a property at a given time.
Market value may be significantly more, or less, than what you'd expect
- if you don't gauge the market accurately - and if you don't weigh
your home-to-be's “buyability” or current home's “saleability”
correctly.
But don't worry, with a proper valuation conducted by certified appraisers,
such as the
one provided for you here, you'll be able to obtain a more precise
estimate of your dwelling's value, thus reducing, or even ridding
yourself, of future hitches.
Buying
It's always a good idea to consult an independent valuer
prior to making your deposit. Why? Well, to prevent excess payment
or any cash-flow problems arising from the purchase price being higher
than the market value.
Not just that... valuations are useful in the area of loan applications
too. Most financers provide loans equivalent to the purchase price
or market value of the property, whichever is the lower.
While the purchase price is often a good indication of market value,
most financers require an independent assessment. Most of these institutions
have their own valuers to advise them, but they're willing to accept
reports from a pre-approved panel of valuation firms or any licensed
valuer, such as the one found here.
Selling
In almost any market, the homes that sell the fastest and for the
most money are those that are priced closest to what a reasonable
buyer would expect to pay at that time. Understanding how much your
home is worth can help you decide on the appropriate price, as well
as other pertinent decisions such as whether or not to sell, and whether
your abode is holding its value.
A good first step will be to get an estimate of your domicile's value
by taking a look at the latest transacted prices of properties similar
to yours. Consider strengthening that estimate through a
comparative market analysis or appraisal done by a certified real
estate professional.
Just remember - the more you understand your
soon-to-be or soon-not-to-be home's value, the better equipped you're
to make decisions when it comes time to buy and sell.
Do bear in mind that these estimated values
are derived based on the local sales and prices at one point in time,
and may not reflect all the other issues affecting your home's value.
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