subject: Property Valuation Report [print this page] Conveyancing is a long process that involves a number of procedures and preparation of many documents. One important document used during buying and selling of real estate is a valuation report. This is typically prepared by professional valuation experts. They analyze various aspects of the property, such as building structure, layout and location, and provide an accurate value of the property. Investors should get this report prepared before taking the decision to invest into a property so that do not end up paying more than the actual worth of the property.
Many investors sometimes try to avoid getting valuation reports as they consider this an unnecessary expense. However, there are many cost benefits of getting this valuation before the purchase. Any possible risk linked with the property, for instance, will be emphasized in the valuation report. This might save the investor thousands of dollars in future.
Valuation reports are an essential requirement under certain conditions. One, when the buyer and seller are from the same family. Two, when the buyer and seller are corporations and are associated with each other. Three, when there is no consideration in the transaction or when the consideration cannot be ascertained.
There are certain vital parts of a professional valuation report. A description of the property must be clearly disclosed in the report together with the property's street address. The report must also include brief descriptions of all property improvements previously made by the owner. Lastly, it should list at least three recent comparable sales in the area. In case it is not possible to provide such details because the property is located in some remote area where sales are not very frequent, evidence of market value can be submitted. This will be accepted of value dated up to three months before the date when the parties signed the transfer of property.
When making a large investment on real estate, a misevaluation of the property may lead to dire financial consequences. Most often than not, a lot of property valuation aspects are missed by investors. These include heritage listings, flooding trends, zoning, building construction materials and even the health of the economy. There are some common mistakes when buying a property, such as lemon buys, over capitalizing and swindled buying.
Many investors end up paying in excess of market value of the property just because they have not appointed conveyancing professionals step them through the purchase process. A professionally done valuation report for the property ensures that right amount of money is spent on the property deal whilst engaging a conveyancing processional ensures that all aspects of the deal are completed correctly.
