At the end of this process there is a number that is intended to sum up the value of a house in all its details. The question then often arises for owners as to what to do next. Are repair measures worthwhile in order to increase the value? Or where do you set the purchase price so that there is still room for negotiations at the end?
The rics property valuation surveyor can give important advice on such questions. He can develop a sales strategy that ensures that you get what your house is worth in the end. The broker is also a proven expert when it comes to marketing issues.
The Complex Appraisals
The procedures used by an appraiser to prepare an appraisal are very complex and uniformly laid down by various laws. The legally standardized rics property valuation methods include the comparative value method, the earnings value method and the material value method.
They are provided for in the so-called property valuation Ordinance and are necessary if the real estate value has to be presented in court or at the tax office.
The comparative value method is the most commonly used valuation method because it is particularly market-oriented. Therefore, it is used in most cases in a planned sale.
So-called comparative values form the basis for calculating the market value. These are usually the purchase prices of properties that have recently been sold and are comparable to the property to be valued.
Furthermore, when determining the value, it is still important to correctly assess the individual characteristics of a property. Such value-influencing properties that deviate from the comparison objects are taken into account as additions and discounts to the comparison value.
The objects to be compared should match in terms of their location and furnishings, and there must also be a sufficient number of them.
If the value of a rics property valuation is determined using the discounted earnings method, then it is about the possible generation of income, such as by renting out the property. The earnings value provides information about the expected return and is calculated using the difference between rental income and the expenses of management.
The building yield value is calculated separately from the land value, which in turn is determined using the comparative value method. The process is therefore not suitable for a planned sale of owner-occupied apartments, it is mainly used for commercial properties such as office space or apartment buildings with three or more residential units.
The so-called material value method is often used when the comparative value method cannot be used due to a lack of a sufficient number of objects to compare.
The value of the property is based on its building fabric and the production costs of the building. The land value is also included in the calculation, which in turn is determined using the comparative value method.
The material value determined in this way is also adjusted to the price conditions on the local real estate market using a market adjustment factor. The material value method is often used for single-family houses that are occupied by the owner himself.
If you need help in rics property valuation you can visit Taylor Chartered Survey essex website.