A valuation report is a way to determine the value of a property through an opinion of the use of data. A property is valued by comparing homes that are sold and bought near the area and by creating an appraisal based in location, amenities, structural condition and recent sales of similar local properties.
Why do you need a valuation report?
A valuation report is important because it provides in an in-depth look at the local real estate market, it can also highlight possible necessary improvements on the property and it helps a buyer to confirm that the price he / she agreed with a seller is correct. It decreases your chances in investing unproperly and save yourself from hassles in the future. Most important reason why a buyer needs an appraisal report is for the mortgage application at the bank or institution that will give the finance.
The following is contained usually in the valuation report;
- Market, execution and rebuild value
- Cadastral map and description
- Color photos
- Dimensions per object
- Condition of the property
- Description of the environment
- Specific technical description of used building materials
- Report of possible termites / white ants
I always advice my clients to first agree upon a price with a seller before making the appraisal.