Property Valuer ExplainedPosted by: Kim Sears | Posted on: December 30, 2020
Property Valuers are individuals who are qualified to assess the value of a particular property and identify the most suitable terms for purchase or resale. In contrast with an appraiser, a property valuer’s role involves much more involvement in assessing the value of a property. Valuations VIC-Property Valuers Melbourne is one of the authority sites on this topic. Property valuers may obtain information directly from the seller, conduct their own inspections or liaise with other relevant parties. On the other hand, real estate appraisers typically need a bachelor’s degree in an appropriate field like property management or real estate law or a related professional qualification.
The major job of property valuers includes assessing the overcapitalisation and undercapitalisation of a particular property, the implications of these trends on prices and their implications for the overall value of the property. Overcapitalisation occurs when a house or piece of property is bought at a price higher than its fair market value, i.e., the price is higher than the amount that the house or piece of land is worth when the buyer went in for the sale. Undercapitalisation is the opposite – in this case, the price of the property is lower than its fair market value, i.e., it is lower than the amount that the house or piece of land is worth when the buyer went in for the sale. Property valuers use a variety of techniques and financial measures to identify these and undercapitalisation trends and recommend methods of dealing with the situation.
A typical procedure followed by property valuers includes obtaining information from various sources, like real estate agents, the bank, owners of homes or companies that have recently sold, among others. This information is then sorted out and analysed according to its value and reliability for making a valuation report. The valuation report is then prepared after applying various economic factors that the report discusses. This report gives the buyer an idea of the property’s fair market value. This helps the buyer in choosing the right home, avoiding overcapitalisation and undervaluation of property.